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Australian home electronics retailer JB Hi-Fi posted a 60 per cent jump in first-half net profit, boosted by big demand for flat-panel TVs and personal audio players, and upgraded its full-year profit outlook.
The retailer said sales so far in January and February had continued the strong momentum of the first half.
JB Hi-Fi raised its full-year sales forecast to A$1.8 billion ($2 billion) from a previous forecast of A$1.7 billion or a 40 per cent increase.
The company, which started out selling car radios, said it expected full-year net profit after tax to be between A$57-60 million, an increase of 41-49 per cent on the previous year and above the consensus of analyst forecasts of A$57 million.
JB Hi-Fi, which competes with Harvey Norman and Woolworths' unit Dick Smith Electronics, is in an aggressive expansion phase and opened 15 new stores in the half for a total of 104 stores. JB Hi-Fi said net profit for the six months to December rose to A$41.94 million from A$26.2 million a year ago.
That was above market forecasts for net profit of A$39.0 million, according to a Reuters survey of four analysts, and it exceeded the previous year's full-year profit.
Same-store sales rose 18.8 per cent in the half, while margins increased 22 basis points to 6.56 per cent.
Both pre-Christmas and post-Christmas trade was strong as consumers continued to upgrade audio-visual technology and laptops, while JB added computers and mobile phones to its product range.
However, analysts have warned consumer spending is set to slow this year as the economy softens and interest rates rise. Shares in JB Hi-Fi have fallen 19 per cent this year on worries about discretionary spending.
- REUTERS
