Net profit up 10% as growth in Home appliances heats up.
JB Hi-Fi sales up almost 7% to $1.94 billion the six months to December 31, as appliances demand booms.
Last month, JB Hi-Fi sales lifted 7.4%, like-for-like rose almost 4%.
The soaring sales for HY14 was attributed to positive demand for home appliances, hardware, and growth in JB’s fledgling commercial division.
Like-for-like sales rose 2.8% in HY14, as demand for PS4, XBox One as well as TV’s all lifted. However, demand for DVD’s, music and games software fell 8%.
Terry Smart JB Hi-Fi CEO said he was “pleased” with the half year results which, he said, “highlighted JB Hi-Fi’s ability to leverage the power of the brand and adapt to the ever changing retail landscape.”
The retailer may open as many as open 50 JB H-Fi Home stores over the next three years, and will convert 13 existing electronics store to selling white goods only, with Smart citing the $4.6bn market opportunity. Like-for-like white goods sales rose almost 14%.
HY14 net profit also soared 10% to $90.3 m, up more than $8 m from same time a year earlier (HY13).
Gross margin rose 11bps to 21.6, which Smart said was a “contributing factor to sold NPAT growth in the second half.”
EBIT rose to $132.9m – up from $123.7m in HY 13.
The figures for HY 14, released today, confirmed JB’s recent trading update, which showed spending on tech goods like tablets, appliances have all rebounded.
Online sales rose over 15% and now accounts for 2.2% of total sales.
The retailer has one of the busiest websites in the country with over 1.23 million visitors per week, up 18%.
Home Appliances has been flagged by Smart as a “significant ” new category in the future, with plans to convert 13 existing electronics stores to JB Hi-Fi Home and may open as many as 50 in the next three years.
“We see the $4.6 bn home appliances market as another significant new category growth opportunity for us moving forward,” he said.
In total, the company expects to open eight new JB Hi-Fi stores, two in the second half of financial 2014 with a total target of 214 by year end.
JB HiFi- commercial division also saw strong growth HY 14.
Looking ahead, the retailer is forecasting net profit to rise 8.3%-10.8%, or $126m- $129m, and sales to jump 6-8% for full year 2014 (FY14).
“We continue to have many opportunities for growth in our traditional categories with the opening of new stores, market share gains and expansion of our commercial division,” Smart said.