By David Winning

SYDNEY--JB Hi-Fi said its sales strengthened in January as it builds on momentum over the previous six months, but it remained cautious due to uncertain outlook for retailers.

JB Hi-Fi said sales at all of its business reported increased last month, with JB Hi-Fi Australia and The Good Guys stores experiencing like-for-like sales growth of 7.1% and 5.9%, respectively.

"Whilst we are pleased to see sales momentum continue into January, we remain cautious given the uncertainty in the retail market and the continued competitive activity," Chief Executive Terry Smart said.

The trading update was provided to investors alongside an 8% rise in net profit and a higher dividend for the six months through December. JB Hi-Fi said its half-year net profit totalled 285.4 million Australian dollars (US$179.0 million), compared to A$264.3 million a year ago. Revenue rose by 9.9% to A$5.67 billion.

Directors of the company declared an interim dividend of A$1.70/share, up from A$1.58 a year ago.

JB Hi-Fi said it continued to benefit from demand for consumer electronics and tech products, with budget-conscious shoppers lured by discounts during the Black Friday and Boxing Day sales. Promotional activity meant gross profit margins at its JB Hi-Fi stores in Australia fell by 17 basis points to 21.8% in the six months through December.

In New Zealand, JB Hi-Fi said first-half sales at its own branded stores rose by 20%. Gross margins expanded by 33 basis points to 17.0%, supported by a tight control of costs in the face of inflationary pressures.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

February 09, 2025 16:52 ET (21:52 GMT)

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