JB Hi-Fi profit rises

Retailer confident of strong year ahead despite less certain retail outlook

By Amanda Sachtleben, Auckland | Wednesday, 11 February 2009
Trans-Tasman electronics retailer JB Hi-Fi has achieved an after tax profit of $59 million for the half year to 31 December 2008, an increase of 41 percent over the previous corresponding period.

Revenue rose 28 percent to $1.26 billion for the half year, the company reported.

In a statement to the Australian Stock Exchange, the company is “cautiously optimistic” that it will have a strong year, confirming previous guidance that sales will be about $2.35 billion, representing a rise of 28 percent on the previous financial year.

Sales in January and February met internal expectations the company says, adding that the Christmas trading period was strong.

It opened 14 stores during the half year and expects to open another seven in the second half of its 2009 financial year. The company’s burst of activity with the 21 new stores is the most it has opened since its inception. It now has 101 stores in Australia and New Zealand and aims to have 150.

“We are extremely pleased with this very strong result, having traded well during what is considered to be the weakest economic climate for many years, CEO Richard Uechtritz said in the statement. Uechtritz told Australian Reseller News home entertainment spending didn’t seem to be down as a result of the current economic climate.

He told the newspaper home entertainment computer systems, games and DVDs were currently the strongest sellers.

JB Hifi entered the New Zealand market in the first half of 2007.