Electronic goods retailer JB Hi-Fi expects to meet its $A3.1 billion annual sales target but profit margins are under severe pressure after aggressive discounting.

Electronics retailer JB Hi-Fi is seeing improving sales activity in the New Zealand market and plans to open more stores after posting a bumper first half profit, it was announced today.

The Australian company reported record half year profits for the six months ending December 31 of $A76 million up 29% on the previous year’s results of $A59 million.

Sales were up 23% from $A1.26 billion to $1.5 billion. JB Hi-Fi chief executive Richard Uechtritz said sales in December were solid across “almost all categories”.

Consumer electronics retailer JB Hi-Fi is planning to double the number of stores it currently operates across New Zealand and Australia, after revealing today that it expects its annual profit to increase by 41%.

The retailer is now expecting a full year profit of about $A92 million for the year ending 30 June, up from $A65.1 million in the 2008 financial year.

It previously predicted a profit of $A87.1 million, but has increased that figure after forecasting sales to increase by 26% to $A2.3 billion over the year, combined with a solid grip on margins and cost controls.

JB Hi-Fi is looking to take advantage of the recessionary environment to expand its business in 2009.

Chief executive Richard Uechtritz says that his company has struggled with all the traditional start-up problems but synergies are starting to come together and he thinks 2009 will be a big year for the brand.

“Everything’s been up this year – margins, sales, morale,” he says.

Discount retailer JB Hi-Fi has booked a stunning annual profit and plans to continue its growth in New Zealand.

The ASX-listed company, which owns JB Hi-fi, Clive Anthony and Hill & Stewart-branded stores, achieved sales growth of 42.7per cent to $A1.83 billion and a 61.1per cent rise in net profit after tax to $A65.1 million across its Australasian businesses.