JB Hi-Fi is continuing to grow sales under new CEO Nick Wells, who expressed confidence that the consumer electronics and appliance retailer is well-positioned heading into Australia's biggest sales period, spanning Black Friday and Christmas.

At yesterday's AGM, the company reported 6% overall sales growth and 5% same-store growth. Wells' optimism comes as some retailers express concern about this year's Black Friday outcomes, with others noting that consumers may be holding back spending ahead of the extended seven-day sales period.

JB Hi-Fi has found success this year selling premium products, including AI-powered notebooks, fitness trackers such as Oura Rings and smartwatches, and Meta's AI-driven Ray-Ban glasses. Looking ahead, Wells highlighted excitement around new AI-enabled glasses from established eyewear brands like Oakley, as well as a new RGB LED TV range from Sony, which he expects will help drive sales in the coming months.

In an interview with the AFR, Wells said, "We're entering an important period with the second-quarter promotional cycle, and we come in with good momentum. We've got strong promotion plans, a solid stock position, and are really optimistic about product innovation, like AI PCs. I appreciate these may not appeal to everyone yet, but AI in devices is an exciting dynamic that will grow over the next few years."

JB Hi-Fi New Zealand was a standout in the AGM, reporting 39.3% sales growth and 24.3% comparable sales growth. Meanwhile, the group's new retailer, e&s, achieved 4.1% growth, attracting attention from several brands anticipating a national rollout as an alternative to Winnings. Premium and affordable-premium appliance brands are also betting on e&s to expand sales outside mass retail channels.

By contrast, sales at The Good Guys have slowed, prompting the group to review floor space allocation and staff training. Total sales growth for the chain slowed to 2.5%, down 5.3% compared to the same period last year.

This morning, JB Hi-Fi shares fell 4.47% to $108.45, despite a 14% gain year-to-date. Analysts attributed the drop to investor concerns that the stock was overvalued following its 12-month rise and the weaker-than-expected growth at The Good Guys. Jefferies analyst Michael Simotas noted that while the first quarter is typically small, particularly with Black Friday gaining significance, the next three months will be crucial for the first-half results.

Russel Chesler, head of investments at VanEck, said the share decline reflected overestimated concerns about consumer sentiment amid predictions that the Reserve Bank of Australia's interest rate-cutting cycle had ended. He remained confident that JB Hi-Fi is set for a strong second quarter, supported by a low unemployment rate.