JB Hi-Fi (JBH): Weak sales patch will pass; internal business levers intact

JB Hi-Fi (JBH): Weak sales patch will pass; internal business levers intact. JBH announced an underlying FY14 NPAT of $128.4m, up 10.3% on pcp. FY15 guidance: FY15 sales of circa $3.8b (implying 3.5% growth). A lack of compelling new foot-traffic driving products in a key category (tablets) has coincided with a weak consumer sentiment backdrop to deliver a depressed trading update. These external factors are also cyclical which we expect will turn to tailwinds as FY15 progresses. Product-wise, sales should benefit from new products (e.g. Surface 3; new iPhone), continued uptake in big screen TVs, and an increased availability of new gaming consoles for this Xmas (which should lift software sales). Macro-wise, we believe consumer sentiment has bottomed/started to improve. We maintain our Buy recommendation.