JB Hi-Fi warns FY26 sales growth despite record revenue

Australia’s largest electronics and home appliance retailer, JB Hi-Fi Ltd., reported record annual sales for the fiscal year ended June 30 while warning of a sharp slowdown in trading during July, according to internal presentation slides seen by Reuters.

The company’s full-year revenue reached a record high, but management highlighted weaker-than-expected sales momentum in the first month of the new fiscal year, raising concerns about near-term growth prospects. The disclosure, contained in FY26 investor materials, underscores a divergence between strong annual performance and the challenges facing the retail sector in the current economic environment.

JB Hi-Fi did not provide specific figures for July trading or quantify the extent of the slowdown in its slides. The company emphasized that the weaker performance was concentrated in discretionary consumer electronics, a segment particularly sensitive to economic cycles and discretionary spending trends.

Analysts noted that the warning contrasts with the broader retail sector’s resilience in Australia, where consumer spending has remained relatively stable despite rising living costs. The electronics segment, however, has faced pressure from higher interest rates, elevated household debt levels, and cautious consumer behavior.

JB Hi-Fi’s shares, which have outperformed the broader market over the past year, came under pressure following the release of the slides. The company’s stock has been a bellwether for consumer electronics demand in Australia, and the July trading update may prompt a reassessment of earnings expectations for FY26.

Management is expected to provide further details on the July performance and revised guidance during the company’s full-year results presentation, scheduled for August 2025. Investors will closely monitor commentary on inventory levels, promotional strategies, and any signs of stabilization in discretionary spending.