The JB Hi-Fi Limited (ASX: JBH) share price was on fire in March. Shares in the Aussie electronics retailer soared 19.3% higher to close the month at $51.10
Why the JB Hi-Fi share price soared higher in March
The S&P/ASX 200 Index (ASX: XJO) finished the month on a strong note as JB Hi-Fi announced a new partnership with Zip Co Ltd (ASX: Z1P). Zip will provide a fully integrated payments solution for both JB Hi-Fi and The Good Guys stores.
The JB Hi-Fi share price managed to surge higher throughout the month as a strong corporate earnings season continued the momentum into March.
JB Hi-Fi itself had a strong half-year results release on February 15. For the six months ended 31 December 2020, JB Hi-Fi reported a 23.7% jump in sales to $4.9 billion. Online sales surged a whopping 161.7% to $678.8 million as Aussies spent big despite lockdowns in parts of the country.
JB Hi-Fi Australia reported a 23.3% increase in sales to $3.36 billion. That, coupled with strong results in New Zealand and The Good Guys segments, boosted overall sales and profit.
Earnings before interest and tax (EBIT) climbed 76% to $462.8 million with an 86.2% increase in net profit to $317.7 million.
The JB Hi-Fi share price actually slid 17.2% in the two weeks following the result. However, a large portion of that can be attributed to shares trading ex-dividend on 25 February. That $1.80 per share interim dividend pushed the shares lower to end the month.
Stronger investor sentiment, however, pushed ASX 200 shares like JB Hi-Fi higher in March. That included fellow ASX retail share Super Retail Group Ltd (ASX: SUL) climbing 7.0% higher in March.
It wasn't all good news for investors in Aussie retailers last month as electronics retailer and JB Hi-Fi competitor Kogan.com Ltd (ASX: KGN) shed 7.6% last month.
Foolish takeaway
The JB Hi-Fi share price surged higher last month despite no new ASX announcements from the ASX 200 retailer. Stronger investor optimism and a significant earnings boost helped propel the Aussie electronics retailer's shares higher to close out the month.
