JB Hi-Fi has produced another strong profit and is spruiking its future growth potential as it expands into the home appliances market.
JB Hi-Fi on Monday announced a 10 per cent increase in profit for the first half of 2013/14 on the back of a near seven per cent increase in overall sales.
That was despite an eight per cent decline in sales of CDs, DVDs and games, which was traditionally the company's main business.
The retailer's hardware division, which includes items like TVs, game consoles and sound equipment, was the main driver of growth, with sales up 11 per cent.
For the full year, JB Hi-Fi expects to make a profit of between $126 million and $129 million, which is up around 10 per cent from last year, with sales up between six and eight per cent.
But JB Hi-Fi has its sights set on even stronger growth as it carves out a place for itself in the $4.6 billion home appliances market.
The company converted 11 stores to the new HOME format during the 2013 calendar year and plans to have converted 50 stores by the end of the 2016 financial year.
The JB Hi Fi HOME stores recorded a near 14 per cent rise in sales during the half year, post conversion.
"Momentum is building in those stores that now have the HOME categories," chief executive Terry Smart said.
"By entering this sizeable home appliance market we see significant opportunity for growth in comparable sales over the medium term."
But Mr Smart said JB Hi-Fi wasn't looking to ditch its CDs and DVDs business any time soon.
"At the moment it still remains a very important part of that entertainment offering that we have," he said.
"Stores we opened in December still had a full range of CD music because our customers still want that."
JB Hi-Fi shares rose 52 cents, or nearly three per cent, to $18.53 on Monday.
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