JB Hi-Fi Ltd (ASX: JBH) shares are storming higher today. 

Shares in the S&P/ASX 200 Index (ASX: XJO) electronics retailer closed yesterday trading for $91.97. At the time of writing, shares are swapping hands for $92.87 apiece, up 1.0%.

For some context, the ASX 200 is up 0.5% at this same time.

JB Hi-Fi stock has come under pressure in 2025, down 2.0% amid the 2.7% year to date retrace of the ASX 200.

But shares in the Aussie retail stock remain up an impressive 48.5% over 12 months, racing ahead of the 2.2% one-year gains posted by the benchmark index.

And that's not including the $3.53 a share in fully franked dividends JB Hi-Fi paid to eligible shareholders over the year.

Of course, those gains have all come and gone.

The question now is, what can investors expect next?

Will high interest rates take a bite out of JB Hi-Fi shares?

"JB Hi-Fi is a leading Australian retailer demonstrating strong brand loyalty, market leadership in consumer electronics and disciplined cost management," said Morgans' Damien Nguyen, who has a hold recommendation on JB Hi-Fi shares (courtesy of The Bull).

According to Nguyen:

While its value proposition and strong cash flows support continued dividends, near term headwinds, such as softer consumer spending, rising cost pressures and intense competition could limit upside potential.

While passive income investors may want to hold the stock for its 3.8% fully franked trailing dividend yield, Nguyen expects that ongoing elevated interest rates may throw up some medium-term headwinds for JB Hi-Fi.

He said:

Given its solid fundamentals, but potential for earnings pressure in a high interest rate environment, JBH is a hold for investors seeking income stability while awaiting a more attractive entry point for future growth.

The buy case for the ASX 200 retail stock

JPMorgan has a decidedly more bullish outlook for JB Hi-Fi shares.

Last week, the broker upgraded the company from a 'neutral' rating to an 'overweight' rating.

JPMorgan analyst Bryan Raymond noted the company's recent half-year earnings results "created an opportunity".

Highlights from those results included a 9.8% year-on-year increase in total sales to $5.67 billion.

And with the company's net profit after tax (NPAT) up 8% to $285.4 million, management boosted the fully franked interim dividend by 7.6% to $1.70 per share.

Commenting on the half-year results, JB Hi-Fi CEO Terry Smart said:

In this challenging trading environment, marked by heightened competitor activity, our focus remained on maximising demand through delivering consistently high levels of customer service and exceptional value for our customers.