JB Hi-Fi shares skyrocket 13.5% after profit upgrade: Midday roundup

Shares in electronics retail chain JB Hi-Fi have risen 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 this morning at 12.10 AEST.

In the six months to December 31, the company’s net profit increased 3.04% from the same 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 have 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.”

Housing finance drops, against expectations

Demand for home loans fell in December, according to the latest figures from the Australian Bureau of Statistics.

ABS data shows the number of home loans granted in December fell by a seasonally adjusted 1.5% to 45,335, although economists had expected the number to be flat.

Total housing finance measured by value fell 2.6% in December, seasonally adjusted, to $20.836 billion.

Shares flat despite JB Hi-Fi surge

Australian shares have opened flat this morning despite a surge by retailer JB Hi-Fi, as a number of businesses prepare to announce results this week.

JB Hi-Fi’s shares jumped 13.53% to $12.50, this coincided with their announcement of their half-yearly profits. The S&P/ASX200 benchmark was up 5.5 points to 4976.8 at 12.00 AEST.