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Festive trade delivers JB Hi-Fi Christmas bonus

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JB Hi-Fi expects continual expansion of its home appliance business to cushion it from a competitive electronics market.

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The home and electronic goods retailer has reported a 7.6 per cent lift in first half profit, thanks to strong Christmas trading during November and December.

However, chief executive officer Richard Murray warns that the market is expected to remain competitive as retailers cycle off a strong second half in the 2015 fiscal year.

He says the company will focus on its JB Hi-Fi HOME store expansion to bolster earnings.

“We continue with a strong investment program including rolling out JB Hi-Fi HOME, the introduction of small appliances to existing stores and upgrades to a number of our stores,” he said.

“This will position us well as we cycle a strong second half in the prior year.”

JB Hi-Fi’s net profit rose to $95.2 million in the six months to December 31, up from $88.5 million a year ago.

Total revenue increased 7.7 per cent to $2.12 billion, with comparable sales up 5.2 per cent.

The retailer said it expects full year profit in the range of $143 million to $147 million, while full year revenue is expected to be about $3.9 billion.

Murray said January sales were pleasing with back to school technology sales driving revenue growth of 10.2 per cent, up from 8.9 per cent growth recorded in January 2015.

However, consolidated comparable sales growth was 6.5 per cent, down from 7.0 per cent.

JB Hi-Fi shares were down 25 cents, or 1.13 per cent, at $21.87 at 1048 AEDT.

AAP

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