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Australia's JB Hi-Fi first-half profit climbs after strong Christmas sales

Published 08/02/2016, 01:32 pm
Updated 08/02/2016, 01:40 pm
© Reuters.  Australia's JB Hi-Fi first-half profit climbs after strong Christmas sales
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By Jarni Blakkarly

Feb 8 (Reuters) - Australian electronics retailer JB Hi-Fi JBH.AX said first-half net profit rose 7.5 percent, helped by strong Christmas sales and the collapse of a rival chain.

JB Hi-Fi and rival Harvey Norman Holdings Ltd HVN.AX , have been widely expected to benefit after Dick Smith Holdings Ltd DSH.AX went into voluntary administration last month due to cashflow problems. profit came in at A$95.2 million for the six months to Dec. 31, 2015, while sales grew 7.7 percent to A$2.12 billion.

JB Hi-Fi said it expects a full-year result between A$143 million and A$147 million, in line with analyst forecasts of A$144.5 million, according to Thomson Reuters I/B/E/S.

Shares in the company fell 1 percent while the broader market was flat.

Some investors were cashing in on profits after JB Hi-Fi shares rose 20 percent in January when the company flagged strong December sales, said IG Markets strategist Evan Lucas.

Analysts also noted that increases in the cost of goods due to a weakening Australian dollar and limited room for strong growth prospects were also concerns for the company.

"Growth is controlled and a little bit of a problem for them as we have probably reached market saturation for electronics," Lucas said.

JB Hi-Fi said it expected to open eight stores in the current financial year. It currently has 194 stores in Australia and New Zealand.

Harvey Norman is expected to report its half-year earnings on Feb. 26.

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