It has been a slow start to the financial year for consumer electronics retailer, JB Hi-Fi, with sales down on a year ago.

New CEO, Richard Murray, said comparable sales to October 26 were down 2.1 per cent between July and October 26.

Sales including new stores were up half a per cent, he told shareholders at the company’s AGM on Wednesday.

Murray said the retailer expected to meet its previous guidance of $3.6 billion in total sales this financial year.

Based on the forecast, JB Hi-Fi expects sales to rise 3.4 per cent in 2014/15 compared to 5.3 per cent last year.

Shares in the retailer had surged 11.2 per cent, or $1.65, to $16.42 by 1143 AEDT.

 Murray said 2013-14 was another good year for JB HI-FI, with the company’s net profit rising 10 per cent to $128.4 million.

However, the company’s share price has dived by more than 30 per cent in 2014, with investors worried about the retail environment and JB Hi-Fi’s growth prospects.

Retail trading conditions had been challenging, both in JB Hi-Fi’s sector and the broader economy since May, Murray said.

Sales in July and August were impacted by a market-wide decline in tablet sales and weaker consumer sentiment.

“Week to week trading remains volatile, however, it is pleasing to see a return to growth in sales in September and October, which we believe places us in a good position as we move into the key Christmas trading period,” he said.

The new iPhones and Microsoft Surface 3, PS4 and Xbox One gaming consoles, had assisted sales growth and would drive sales through the Christmas period, he said. 

The company plans to open eight new stores in 2014-15, including three in the first half.

It will also convert 26 existing stores to its new HOME appliances format.

“We continue to invest in the store network, with capital expenditure in FY15 expected to be in the range of $50m to $55m, driven by the new, relocated and converted stores,” he said.

AAP