JB Hi-Fi Profit Soars 10%

Written by Oonagh Reidy     28/01/2014 | 11:54 | Category: INDUSTRY

Shares soar as net profits and sales rise for electronics giant

JB Hi-Fi Profit Soars 10%
JB Hi-Fi total sales rose 7% to $1.94 bn for six months to December 31 (HY14), the retailer said in a trading update today. 

This marks a rise from $1.82 bn revenue recorded in HY13. JB said January maintained the positive sales trend, at circa 2% for the month. 

Like-for-like sales were up almost 3% for HY14.

JB Hi-Fi benefited from the massive surge in demand for iPads and Android tablets, and the overall increase in consumer spending in its December quarter, Citi analyst Craig Woolford, believes.  

Net profit (NPAT) rose 10% to $90.3 m. 

Gross margin was also up slightly 21.6% - up 11bps - while earnings rose 7.5% to $132.9 m. 

The retailer is maintaining its full year sales guidance of 6-8% growth. 

JB Hi-Fi shares rose over 7% to $19.6 on the ASX today.  

The Melbourne-based retailer will formally release its HY 14 results on 3rd February, and will provide full year guidance but would not comment further until then.