JB Hi-Fi has posted a 4.6 per cent slide in profit over the financial year, despite a rise in revenue.
The company reported a 5.7 per cent rise in sales for the group to $3.13 billion, largely due to the opening of new stores.
JB Hi-Fi opened 15 new outlets, and shut four, leaving it with 155 Australian stores and 13 in New Zealand.
However, its net profit after tax dipped to $104.6 million, as the closure of some rivals led to clearance sales that accelerated price falls for the electronic goods that JB Hi-Fi specialises in.
The company's chief executive Terry Smart says JB Hi-Fi's profit met guidance, and should improve as weaker competitors close.
"Challenging trading conditions have driven competitors with higher cost bases out of the market, enabling JB Hi-Fi to continue to grow both its store network and market share," he said.
"We are very well positioned for any rebound in consumer spending." The company says it intends to continue its planned expansion to 214 stores, with 16 new stores expected to open in the current financial year, and three stores to close.
It says its online sales also grew by 77.3 per cent over the past year, however they still made up just 1.6 per cent of total sales.
The company expects similar sales growth next year to this year, with overall revenue up 5.5 per cent to $3.3 billion on an expanded store network, but same store sales down around 1 per cent.
The results got a very warm reception from investors, with JB Hi-Fi shares up nearly 7 per cent to $9.86 by 11:51am (AEST).