Electronics chain JB Hi-Fi has its sights set on a bumper rise in sales as it sets about luring customers from its troubled rivals Dick Smith and Masters.
The retailer lifted its full year sales forecast from $3.85 billion to $3.9 billion after unveiling a strong rise in first half profit on Monday.
The potential closures of stores belonging to rival electronics retailer Dick Smith and DIY chain Masters, which JB Hi-Fi says has a similar customer to its whitegoods business HOME, is expected to benefit JB Hi-Fi.
While JB Hi-Fi has ruled out buying Dick Smith, chief executive Richard Murray says the company was focused on expanding its market share.
"We want to take market share from any of our competitors, be it Masters or Dick Smith," he told AAP.
Dick Smith called in the receivers in January after a pre-Christmas fire sale failed to keep the company afloat.
The future of Masters is also unclear after its owner, supermarket giant Woolworths, announced plans to sell or shelve the troubled chain.
Mr Murray said while JB Hi-Fi would look at possibly acquiring individual Dick Smith stores if any were put up for sale, he noted the outlets were smaller JB Hi-Fi's.
JB Hi-Fi lifted its first half net profit by more than seven per cent to $95.2 million in the six months to December 31.
It has forecast a full year profit in the range of $143 million to $147 million, up from $136.5 million in 2014/15.
Mr Murray said January sales were pleasing with back-to-school technology sales driving revenue growth of 10.2 per cent, up from 8.9 per cent growth a year ago.
He warned the second half was cycling off a strong 2015 bolstered by federal government's small business tax incentives announced in the May budget.
The group has been focusing on expanding its HOME business, which sells whitegoods ranging from fridges to kettles, and expects it to be a key driver of future growth.
It has nine HOME stores, including one in New Zealand, and plans to open five more and convert another 13 this year.
Morningstar analyst Daniel Mueller said the first half results and the January trading update were strong but forecasts of a weaker second half was weighing on the retailer's share price.
"It was a good sales result but it hasn't come through in margins due to a combination of a weaker Aussie dollar which puts pressure on import costs and the cost of business going up from the roll out of new stores," he said.
JB Hi-Fi shares fell 12 cents to $22.00.
JB HI-FI TO LEVERAGE OFF RIVALS' DRAMAS:
* Half year net profit up 7.5pct to $95.2m
* Revenue up 7.7pct to $2.12b
* Interim dividend of 63 cents, from 59 cents
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