JB Hi-Fi is continuing its expansion into the home appliance market with plans to more than double the number of JB Hi-Fi Home stores from 22 to 52 by the end of this financial year.

The publicly listed retailer today announced a net profit after tax of $128.4 million for 2014 financial year, up 10.3 per cent year-on-year. The company recorded an increase of 5.3 per cent in total sales, to $3.48 billion.

As of 30 June there were 22 physical JB Hi-Fi Home stores and an online store, up from just eight stores at the end of FY13. During FY13 the company invested $13.9 million in the conversion of 13 existing stores to JB Hi-Fi Home and the opening of one new JB Hi-Fi Home store in Australia.

The company anticipates 26 more stores will be converted to JB Hi-Fi Home this financial year and four new stores will be opened, taking the total to 52. That number is forecast to grow to 75 by the end of FY16 with the “long term opportunity still to be fully qualified.”

The figures were published today in the company’s annual report which also identified that “JB Hi-Fi Home represents a significant sales growth opportunity as JB Hi-Fi grows its share of the circa $4.6 billion per annum home appliance market.”

The report also states that the move into the appliance segment will leverage the strength and trust in the JB Hi-Fi brand and, that the value of the home appliances market is larger than many of the categories JB Hi-Fi currently operates in.

“The JB Hi-Fi Home expansion is one year ahead of our original expectations with results to date highlighting the opportunity for us to leverage the strength and trust in the JB Hi-Fi brand into the appliance categories,” said JB Hi-Fi CEO Richard Murray.

The converted JB Hi-Fi Home stores achieved comparable sales growth of 10.6 per cent in FY14 post conversion and results to date suggest annualised incremental sales per store of circa $3 million in the first year post conversion, increasing to circa $5 million in the second year.

The timing of the decision to move into the appliance industry was justified in the report by the “growth in the connected home and appliances becoming more of a fashion statement within the home.”

“We continue to build support from suppliers and engagement with our customers and staff. As customers move towards the ‘connected home’, JB Hi-Fi will continue to be seen as the destination for expert advice from passionate knowledgeable staff,” Murray said.