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JB Hi-Fi share surge after profit rises 3%


Shares in JB Hi-fi have soared by more than 15 per cent after the electronics retailer announced it had lifted its first half profit by three per cent.

The company made a net profit of $82 million in the six months to December 31, up from $79.6 million during the previous corresponding period.

Total sales grew by 2.3 per cent due to the retailer opening 11 new stores during the half.

But on a comparable sales basis, sales were down 3.5 per cent on the first half of 2011/12.

JB Hi-Fi expects its full year net profit to be in the range of $108 million to $112 million, up from the previous year $104.6 million.

Shortly after the announcement at 1211 AEDT JB Hi-Fi shares surged 15.53 per cent, or $1.71, to $12.72.

It is the highest level the stock has traded at for 12 months.

Lonsec private client adviser Michael Heffernan said the market had reacted positively to JB Hi-Fi's profit growth considering the tough trading conditions.

"That's an excellent performance by JB in a pretty inclement, overall, retail environment," Lonsec private client adviser Michael Heffernan said.

Chief executive Terry Smart said the biggest contributing factor to the fall in comparable sales was the television category in which the number of sales had fallen because prices had risen.

However, he said JB Hi-Fi continued to gain market share in that category.

Mr Smart said calendar year 2013 was off to a good start with comparable sales up 4.2 per cent on January 2012.

He said February sales had also been pleasing but it was a bit too early to make any predictions for the month.