👉 Background: The Good Guys is the electronics and home appliances company that started back in 1952 in Melbourne, and has grown to over 100 stores and 3,500 employees. They were acquired by JB Hi-Fi for $870 million back in September 2016.

👉 What happened: The Good Guys ran a promotion between 2019 - 2023 which offered customers store credit if they spent over a certain amount of money on products. But in the fine print, it said you needed to use the credit within 10 days… or it disappears. Ouchhhh.

👉 What else: Now, the Australian Competition and Consumer Commission (ACCC) has alleged that The Good Guys made misleading representations in 116 different promotions over the past 4 years by burying these terms in hard-to-find locations. Interestingly, after JB Hi-Fi disclosed its little run-in with the ACCC, its share price jumped 2%.

What's the key learning?

💡A rising tide can lift all boats - even if you're facing specific company issues. This is the idea that confidence in an industry or economy can benefit all companies - even those with not-so-positive news.

💡Yesterday, the optimism on the Australian sharemarket was widespread. Only 37 of the top 200 ASX-listed companies dropped in the afternoon trade (compared to ~100 on average). On top of that, not a single sector on the ASX was negative yesterday.

💡This is a pretty clear sign that there is a lot of confidence in the Australian share market. So, even though this news is quite the distraction for the JB Hi-FI group to deal with - the timing of it was quite impeccable…on the day when the ASX200 nearly reaches an all-time high.