JB Hi-Fi Must Be Still Selling A Lot Of Games And Consoles

JB Hi-Fi Must Be Still Selling A Lot Of Games And Consoles

JB Hi-Fi Must Be Still Selling A Lot Of Games And Consoles

Australian electronics retailer JB Hi-Fi Ltd said half-yearly net profit rose 37 percent as the firm successfully protected its turf in an intensifying online retailing war in its key market.

For HY18, JB Hi-Fi posted a 24.9% increase in EBIT - $225.8 million versus $180.8 million recorded in the same period previous year.

The retailer has declared an interim dividend of 86 cents (fully franked) per share - a notable 19% increase from the previous corresponding period.

"JB Hi-Fi has rallied strongly into this result on high expectations for Christmas trading (and) while this proved correct, concern is likely to build around gross margin pressure", Citi analysts wrote in a client note.

Online sales for JB Hi-Fi rose 41 percent to A$119.3 million in the six-month period, a fraction of total sales which came in at A$2.48 billion.

Total sales in New Zealand dropped 0.4 per cent to $115.5 million ($NZ124.6 million).

"Having owned The Good Guys for over 12 months we are now starting to realise the benefits of scale of the combined group and remain excited by the opportunity to grow of of Australia's leading retail brands", JB Hi-Fi's CEO Richard Murray said.

JB Hi-Fi closed one of its New Zealand stores in the six months ended December 31, while opening seven new stores in Australia.

However, there was some weakness in the company's results - particularly from its New Zealand business.

Concerning future outlook, the retailer expects full-year net profit to be between $235 million - $240 million.

Total sales growth for The Good Guys was 5.0% and comparable sales growth was 3.5% in January 2017, and the same figures fell to -3.5% and -4.7% respectively in January 2018.

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