Friday 16 December 2011

JB Hi-Fi Surprises With Profit Slump

The darling of the retail set has surprised with yesterday’s profit warning for the pre Christmas period saying increased volume cannot compensate for reduced margins, particularly on TV panels.
JB Hi-Fi said earnings before interest and tax for the six months to December 31 would be about 5 per cent below the previous corresponding period - the company's first fall in profits despite adding new stores.

This announcement does not bode well for the general level of Christmas sales across the retail industry.