JB Hi-Fi – even the best get brutalised

 In Australia, NewZealand
Just the spectre of Amazon can eat into retail earnings performance, even before it shows evidence of stealing customers.
Witness JB Hi-Fi – the market darling of the retail industry that managed to spook investors despite robust earnings growth in the first half of the financial year.
Retailing in Australia is a hazardous game. Performance needs to be perfect and any cracks are elevated to tectonic faults, while disappointments are forensically scrutinised.
Over the past week alone, we have witnessed Wesfarmers’ disastrous foray into the UK home improvement market, and the calamitous spiral in the performance of Myer, whose deteriorating balance sheet is heading towards a nasty collision with its lenders.
It is understandable that investors in retail stocks are skittish. Sydney Morning Herald – Read more…

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