JB Hi-Fi continues to sail through the economic downturn, unveiling 8.4 per cent comparable sales growth for the first three months of 2009-10 and sounding cautious optimism for the Christmas shopping period.
Fronting the retailer's annual meeting in Melbourne yesterday, chairman Patrick Elliott left the door open for a special dividend or other measure after shareholders questioned the fate of $100 million in franking credits sitting on the company's balance sheet.
But Mr Elliott said such a move was not likely in the short term, with the company continuing to channel funds into opening new stores and reducing net debt.
''I think until … we have more confidence about the environment in which we continue to trade, that will remain the focus for us,'' he said.
''But we do continue to look at ways in which we can return funds to shareholders, whether it's by a special dividend … I think [it will be] probably business as usual for the next little while, but capital management remains a focus for the board.''
JB Hi-Fi shares surged 92¢, almost 5 per cent, to $19.42.
The company maintained its sales guidance of about $2.8 billion, 20 per cent up on 2008-09. The 8.4 per cent first-quarter sales growth came after the company said in August that sales growth had been just 3.8 per cent for the first five weeks of the financial year. It is now planning on opening 15 new stores by Christmas, taking its total network to 137.
Chief executive Richard Uechtritz told reporters the company should have a ''reasonable'' Christmas if trading remained strong but said it was still early to make a call.
He said he was ''not at all'' worried about the impact of this month's interest rate rise on consumer spending. ''My take on it is the small amount of money that it will take out of the disposable income would have been more than offset by the extra confidence that it gave the whole nation.''
The rise in the Australian dollar had not impacted JB Hi-Fi's costs, he said.
