Electrical retailer JB Hi-Fi Limited (ASX:JBH) has tipped its full year net profit will fall by up to 9 per cent as it struggles against heavy discounting in the industry.
JB Hi-Fi expects to book a full year net profit of between $100 million to $105 million, down from $109.7 million generated the year before.
CEO Terry Smart says the company believes the current level of discounting will continue over the next quarter but not that this is a long-term structural change.
Mr Smart has also vowed that JB Hi-Fi will react aggressively to maintain its market leadership.
JB Hi-Fi’s net profit fell 9 per cent to $79.6 million in the first half of its 2012 financial year.
