JB HI-FI SHARES SURGE AS FORMER CEO RETURNS TO THE BUSINESS
Written on the 6 April 2017 by David Simmons
The former CEO of JB Hi-Fi, Terry Smart, will return to the business as head of its subsidiary The Good Guys, following the resignation of Michael Ford.
Smart was CEO of JB Hi-Fi from 2010 to 2014 and he returns to the fold just months after the company sealed its $870 million takeover of The Good Guys.
"After 13 years with The Good Guys it was a hard decision to make," says Ford.
"Having been with the business since 2004 and most recently navigated the business through the buy-out of the joint venture partners, the potential listing, and the sale process to JB Hi-Fi, I believe this is the right time for me to seek new challenges and for the business to move forward under new leadership."
Smart says he is looking forward to undertaking the new role at The Good Guys.
"I am very excited. It is an iconic brand, and a business that I have admired for a long time," he says.
"I look forward to building on the business' many strengths and continuing to grow the brand as part of the JB Hi-Fi Group."
Parent company JB Hi-Fi revealed The Good Guys sales increased by just 1.2 percent in the March quarter, compared to 8.2 percent sales growth at JB Hi-Fi in the same period.
The company reaffirmed its full year guidance of $5.58 billion in group sales with $4.33 billion from JB Hi-Fi and $1.25 billion for The Good Guys. Net profit is expected in the range of $200 million to $206 million.
JB HI-FI (ASX:JBH) shares were up around 4 per cent to $25.35 at 3pm AEST after the announcement.
Business News Australia
Author: David Simmons