Harvey Norman Sales Dive 8%, Profits Plunge
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Harvey Norman OZ sales down 8% for FY 2012


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More woes for Gerry Harvey as Harvey Norman’s Australian operation fell 8.1% for the FY 2012 to June 30, with every quarter but the first showing a fall in sales of almost 10%.

Like-for-like sales also fell 7% locally.

Harvey Norman’s profit before tax also fell 39% to $227.6 m compared to $373.9m for FY 2011, blaming “deflationary headwinds” and currency changes for its woes.

Global sales for Harvey were also down 7% compared to June 2011 to $5.74bn, the electronics retailer said in a statement.

Harvey NZ chain also fell 4% for the year to June 2012 although its European interests fared better with Slovenia/Croatia +35%, Ireland +6.3% and Northern Ireland +2% operations all posting sales increases (in constant currencies), while like-for-like sales numbers also told a similar story.

Overall, however, like-for-like global sales also dropped 6.5%.

Global sales were affected by the deterioration of the Euro and the UK pound but was given a slight boost from the positive appreciation of the NZ dollar, the retailer said.

The figures also exclude its Singapore based interests.

 

“Trading conditions continued to be challenged coupled with deflationary headwinds particularly in the technology categories” the retailer said, adding “home appliances, furniture, bedding remain stable.”

Harvey also said its retail franchisees “will continue to innovate, invest and improve their product offering, online channel, staff training and strategic category enhancements.”

Company shares fell 0.66% today to $1.957 following the announcement on its preliminary profits for FY 2012, which are unaudited.