Shares in JB Hi-Fi are tanking

Shares in JB Hi-Fi are tanking

"We continue to reposition the New Zealand business as part of our strategy to improve performance", the retailer said in presentation slides accompanying the release.

Gross profit for the period climbed 9.8% to $545.3 million.

For HY18, JB Hi-Fi posted a 24.9% increase in EBIT - $225.8 million versus $180.8 million recorded in the same period past year.

Australian electronics retailer JB Hi-Fi Ltd posted a record first-half net profit, but spooked investors by warning that earnings growth would slow amid fierce competition, knocking its shares down by more than 8 percent.

Total sales in New Zealand dropped 0.4 per cent to $115.5 million ($NZ124.6 million).

Government figures show the value of electric and electronic goods retail sales rose 5.8 percent $3.22 billion in the March 2017 from a year earlier, lagging an 11 percent increase in the volume of sales.

The company declared a higher interim dividend of 86 cents per share for the year ending June 2018.

On these results, JB's Australian segment is continuing to perform strongly, though the same can't be said of The Good Guys and the New Zealand business.

JB Hi-Fi added that sales from its appliances chain, The Good Guys, which it bought in 2016, grew just 1.8 percent on a comparable store basis in the six-month period.

Concerning future outlook, the retailer expects full-year net profit to be between $235 million - $240 million. This comprises $4.75 billion from JB Hi-Fi and $2.1 billion from The Good Guys.

It now has a total of 311 retail stores across Australia and New Zealand.

Following on from the acquisition of The Good Guys, total group sales are forecast to be around $6.85 billion.