JB Hi-Fi Shares Fall as CEO Terry Smart Announces Exit

Highlights:

• JB Hi-Fi Limited (ASX: JBH) shares dropped 7.48% to $108.90 at the time of writing after CEO Terry Smart announced he will step down in October 2025.
• FY25 results beat expectations, with sales up 10% to $10.56 billion and profit rising 5.4% to $462.4 million, alongside a special dividend.
• Analysts view incoming CEO Nick Wells as a “safe pair of hands,” expecting strategic continuity in a challenging retail environment.

JB Hi-Fi Limited (ASX: JBH) shares slid sharply on Monday after the company announced that long-serving Chief Executive Officer Terry Smart will step down in October 2025. He will be succeeded by current Chief Operating Officer Nick Wells, a veteran of the company since 2009. At the time of writing, JB Hi-Fi shares were trading at $108.90, down 7.48%.

Leadership Change Overshadows Strong Results

The news of Smart’s departure comes despite a strong performance in the 2025 financial year. The retailer posted a 10% rise in sales to $10.56 billion and a 5.4% lift in net profit to $462.4 million. The result also included a special dividend, which has drawn the attention of income-focused investors.

Citi analysts described Wells as a “safe pair of hands” given his strong track record in operations and finance, having previously served as Chief Financial Officer. They also noted the market’s likely approval of JB Hi-Fi’s earnings beat, solid trading update, and shareholder returns.

Analysts Highlight Resilience in a Tough Market

eToro market analyst Farhan Badami said JB Hi-Fi’s strong execution stood out in a retail sector still grappling with cost pressures and softer discretionary spending. He credited the company’s performance to brand strength, disciplined pricing, and a diverse product mix that kept sales momentum intact.

While Wells is expected to maintain strategic continuity, Badami noted that growth-focused investors might question the stock’s further upside given its strong recent run.

Market Reaction

Despite robust earnings, the leadership transition spooked investors, with JB Hi-Fi among the day’s biggest decliners on the ASX. The stock’s pullback reflects a combination of profit-taking and uncertainty around the incoming CEO’s leadership style.

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