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Figure 1: JB Hi-Fi 12 month chart


Discount retailer JB Hi-Fi (JBH) issued an in line with forecast 1H14 Net Profit After Tax (NPAT) of $90.3m; a 10% rise on the previous corresponding period.

The gross margin of 21.63% was a 0.11% rise on the previous year; a positive sign that JBH is increasing revenues, while making more money on each sale.

This is particularly a positive considering our weaker dollar.

Sales growth was robust and JBH has a more conservative approach to debt – borrowings now at just $49.4m ($40.6m less than last year).

Online sales rose by 15.4% and are growing at 30%/yr (only 2.2% of total sales).

JBH pre-released its result last week; to counteract weak updates from The Reject Shop (TRS) and Super Retail Group (SUL) which has meant few surprises today. JBH delivered a fully-franked 55c dividend; payable to investors on 28 Feb.

Looking ahead, JBH has maintained sales guidance of 6%-8% growth over FY14 (July 2013-June 2014) and expects NPAT between $126m-$129m (an 8.3%-10.8% rise).

It plans on opening 8 stores over FY14 and transforming 13 into Home stores (focus on household appliances).

JBH was one of the most short-sold stocks in Australia in recent years, pushing its shares down by 54% between 2010 and 2012.

JBH shares rose 107% between Jan-Dec 2013; however are down 16% since Jan 2014.


You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,