Shares soar as net profits and sales rise for electronics giant
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.
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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.
