JB Hi-Fi (ASX:JBH), one of Australia's major home entertainment retailer, expects its sales to go beyond the $3 billion mark this year as continuing demand for iPads, DVDs and TVs helps push record sales and underpins its plan to run 210 branded stores over the next five years.

JB yesterday stressed its dominance of the home electronics and entertainment sector, revealing a 26 per cent rise in the 2009-10 annual net profit to a record $118.7 million after a 17 per cent sales increase to $2.73 billion.

But even with the record result and upbeat forecast, the company is still facing the same challenge as the rest of the retail industry in having its results compared with that of the previous year, when the economy was enjoying the federal government's multibillion-dollar stimulus package.

The announced profit was marginally below the consensus forecast of $120 million. Some analysts attribute this to the lagging like-for-like sales growth of 4.8 per cent and a particularly difficult second half.

While JB recorded wider gross margins for the year, higher by 12 basis points to 21.8 per cent, and surpassed other retailers in posting double-digit profit growth, it was not secured against broader industry influences of poor consumer sentiment and the lack of the government's stimulus spending.

It said total sales expansion in July was positive and, although comparable-store sales growth was a little negative for the month, it was hinting an improving trend on June.

Chief executive Terry Smart said JB had launched a record 23 stores in 2009-10, increasing the total to 141, wherein 130 were JB-branded shopfronts.

Mr Smart said the retailer aspires to open 210 stores within five years and intends to launch 13 to 15 a year.

Shares in JB yesterday shed 10¢ at $19.45.