Shares in electronics retail chain JB Hi-Fi rose more than 13.5% this morning to a one-year high after the company announced a rise in annual profit.
But the company also said it expects tough conditions, and price discounting, to continue within the retail sector in general.
Shares were up 13.4% to $12.49 just after noon
In the six months to December 31, the company’s net profit increased 3.04% from the corresponding period in 2011, reaching $84.05 million. Total sales grew 2.3%, although on a like-for-like basis sales were down 3.5%
Chief executive Terry Smart said sales increased in the 2013 calendar year, with the business expecting full-year sales of $3.25 billion and net profit after tax of between $108 million and $112 million, up from $104.6 million.
“In the second half of FY12, we saw aggressive discounting across the market which, while driving sales, did impact gross margin,” Smart said.
“As we cycle this period we anticipate sales growth may be more challenging, but this should be offset by a relatively stable gross margin environment.”
This article first appeared on SmartCompany.