JB Hi-Fi (ASX:JBH) reported a small miss on underlying earnings before interest and taxes for fiscal 2026 and provided a weak update for July, which will likely translate into the stock trading weaker on Monday, Jarden said in a same-day note.

July sales were down across the company's Australian operations and The Good Guys retail brand, which was a function of competition and demand and supply dynamics, the investment firm said.

The focus will now be on JB Hi-Fi's ability to recover like-for-like sales through the first half of fiscal 2027 at a time when housing activity is falling sharply, cash flow is constrained, and price increases are flowing, Jarden said.

"Overall, we expect weakness today with consensus cuts of [mid-single digits] likely, with questions over when and to what extent sales will recover," it said.

Jarden has a buy rating on JB Hi-Fi with a target price of AU$87.10.

The company's shares fell 12% in recent Monday trade.