It's high fives for JB Hi-Fi's latest profit predictions
JB Hi-Fi shares jumped to another year high on Friday after the retailer raised its earnings guidance.
The electronics retailer said expected net profit would be about $112 million to $116 million, a 7 to 12 per cent rise from the previous corresponding period. Previous guidance was for $108 million to $112 million.
It estimated that sales would rise from $3.25 billion to $3.3 billion.
"This updated guidance has been driven by stronger-than-expected sales in the second half of the 2013 financial year," JB Hi-Fi said.
Shares jumped as high as $16.93 after the announcement on Friday before closing $1.25 higher at $16.75.
The stock is up about 60 per cent since February this year when chief executive Terry Smart said the company would return to profit growth this year and reported early indications of strong sales growth and stabilised gross margins.
Retailer Gerry Harvey confirmed last month that conditions were improving with Harvey Norman registering its first quarterly sales growth in almost two years.
JB Hi-fi said gross margins had remained "relatively stable" for the four months to April 30 and continued to track ahead of the same trading period last year.
Sales growth in Australia and New Zealand for the four months to April 30, 2013, was 10.3 per cent - more than double the sales growth for the 10 months to April 30.
Comparable store sales growth was 3 per cent for the four months to April 30. For the 10 months to April 30, comparable sales dropped 1.3 per cent, an improvement from the 3.5 per cent drop in comparable sales for the December half year.
The company said it had opened 13 new stores in Australia this financial year and would have 177 stores in operation by June 30.