Consumers have been splashing out on smartphones, computers, cameras and home appliances to drive JB Hi-Fi's half-year earnings to a record high.
JB Hi-Fi's net profit rose nearly 16 per cent to $110.4 million as revenue jumped 23.6 per cent to $2.6 billion for the six months to December 31 compared to the same period a year ago.
The group's acquisition of whitegoods retailer The Good Guys in November and the collapse of rival consumer electronics chain Dick Smith in May helped boost earnings.
But the retailer says consumers appetite for big screen televisions, smartphones, drones, GoPro cameras, computers and small home appliances underpinned its comparable store sales, a crucial measure which strips out one-off events.
JB Hi-Fi's total comparable sales for Australia rose a 8.7 per cent for the half.
Chief executive Richard Murray said people were happy to keep buying the latest smartphones outright with all its brands - Apple, Google, Samsung and Oppo - doing well.
Consumers are also shifting back towards more expensive video cameras, including GoPros, drones, and digital SLR cameras to capture their special moments rather than just on their smartphones.
"People want to share their experiences, be it mounting adventure cameras on your surfboard, bike or your head," he told AAP.
"Then there are drones that can follow you as you ride around or surf and on top of that, digital SLRs have had good stock flow this year.
"Customers want to take great photos and manufacturers are improving the technology to wirelessly connect your phone to these devices and they are embracing apps where you can take amazing photos on your digital SLR and then immediately sync it to your phone."
He said consumer electronics and technology are a high priority for households with most families owning multiple devices and are prepared to update to the latest.
JB Hi-Fi's January sales were up 9.8 per cent with comparable sales growth of 7.2 per cent.
The group is expecting the impact of Dick Smith's demise to moderate during the second half but is confident in its strong sales momentum continuing.
It has forecast total group sales, including The Good Guys, to be about $5.58 billion for the full year and underlying net profit in the range of $200 million to $206 million, an increase of up to 35.4 per cent on the prior year.
The Good Guys, acquired on November 28, recorded sales growth of 0.7 per cent to $263.1 million during December but comparable sales fell by 0.7 per cent.
In January, its comparable sales rose 3.5 per cent with total sales up 5 per cent.
However, the group's New Zealand stores' total sales dropped 1.7 per cent and comparable sales fell 11.2 per cent during the first half.
Shares in JB Hi-Fi closed 91 cents higher - 3.2 per cent lift - at $29.38 on Monday.
BIG DEMAND FOR ELECTRONICS LIFTS EARNINGS:
* Net profit up 16pct to $110.4m
* Revenue up 23.6pct to $2.6b
* Fully franked interim dividend up nine cents to 72 cents
Share
