The JB Hi-Fi Limited (ASX: JBH) share price is tumbling lower on Wednesday afternoon.
At the time of writing, the retail giant's shares are down over 4% to $45.51.
Earlier in the day, the JB Hi-Fi share price was down as much as 7% to $44.25.
Why is the JB Hi-Fi share price tumbling lower?
Investors have been selling the company's shares today following the surprise announcement of the exit of its CEO after almost seven years in the job.
According to the release, Richard Murray is leaving the retail giant to take on a new challenge in August and will be replaced by former CEO Terry Smart.
In another announcement, it has been revealed that Mr Murray is leaving to join Premier Investments Limited (ASX: PMV) as the CEO of Premier Retail.
Premier Retail is responsible for a number of popular retail brands such as Just Jeans, Peter Alexander, and Smiggle.
Sales update
This news appears to have overshadowed a solid sales update by JB Hi-Fi this morning.
According to the release, the JB HI-FI Australia business reported sales growth of 10.4% during the third quarter. This was driven by comparable sales growth of 11.5% and brought its year to date sales growth to 19.4%.
It was a similar story in New Zealand, with the JB Hi-Fi New Zealand business reporting third quarter sales growth of 16%. This has taken its year to date sales growth to 11%.
Finally, the company's The Good Guys business has experienced a slowdown in its growth, but still delivered a solid 5.8% increase in third quarter sales. Year to date, its sales are now up 19.5%.
Management commented: "The Group is pleased with the Q3 sales result and trading in April to date. Whilst from mid-March we commenced cycling elevated sales growth last year, we continue to see heightened customer demand and strong sales growth rates over a two-year period. In view of the ongoing uncertainty arising from Covid-19, the Group does not currently consider it appropriate to provide FY21 sales and earnings guidance."
