JB Hi-Fi reports sales slide

JB  JB Hi-Fi shares have climbed almost five per cent after the company announced a small slide in its first half profit and forecast a flat full year result.

The home and electronic goods retailer made a net profit of $88.5 million for the six months to December 31, which is down from $90.4 million a year ago.

However, it has reaffirmed its full year sales forecast of $3.6 billion and expects full year net profit to be in the range of $127 million to $131 million, compared to $128 million in 2013/14.

JB Hi-Fi shares were up 80 cents, or almost five per cent, to $17.55, as of 1015 AEDT.

Total sales were up 1.3 per cent during the half, while comparable sales fell 0.7 per cent during the half.

But CEO, Richard Murray, said both total and comparable sales were higher in January.

“January sales and operational earnings are ahead of the same period last year and to date comparable sales growth is now positive,” he said.

“This gives us confidence on our momentum for the second half.”

Murray said the half year result was pleasing given slower first quarter sales growth.

He said the company’s home and kitchen appliance division continued to build momentum with customers and suppliers.

The company opened three new JB Hi-Fi Home stores in the first half of fiscal 2015 and plans to open another two.

It has also restated its target of 214 stores across Australia and New Zealand.

JB Hi-Fi lifted its interim dividend four cents to 59 cents per share, fully franked.

AAP

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