Harvey Norman profit drops 20%

Harvey Norman's profit for the first quarter has dived by 20 per cent as low consumer confidence and price deflation continues to hit the retailer's technology and entertainment sales.

The company said its unaudited profit before tax and minority interests for the three months to September 30 were $50.1 million, down 20.3 per cent from $62.8 million in the previous corresponding period.

"Technology and entertainment sales continue to be affected by the cautious consumer and continued price deflation," Harvey Norman said in a statement.

However, Harvey Norman continued to drive its number one market share position in television and was hoping to do well from new electronic devices.

"The launch of Windows 8 globally on October 27 saw more than 35 new devices released to the market," the company said.

"White goods, cooking, small appliances, furniture and bedding remain solid."

During the first quarter the company's global sales fell 10 per cent to $1.33 billion, compared to the same period last financial year.

Like-for-like sales in the first three months dropped 7.8 per cent from the same period last year.

The largest fall in any of the retailer's markets was in Australia where total sales for the first quarter plunged 11.5 per cent on the previous corresponding period.

Like-for-like sales in Australia for the three months to September 30 were down 8.7 per cent compared to the same period last year.

But when taking out the impact from the closure of Clive Peters and Rick Hart stores total sales in Australia were only down 5.4 per cent.

Harvey Norman's total sales compared to the previous corresponding period were mixed across its markets.

In New Zealand the retailer's total sales fell 1.3 per cent but in Slovenia and Croatia they gained 26.3 per cent.

Total sales were also up (6.1) per cent in Northern Ireland but down 2.9 per cent in Ireland.

At 1445 Harvey Norman shares plunged 7.75 cents, or 4.19 per cent, to $1.77.

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    0.9327-0.0005-0.05%
    AUDUSD=X
    0.5555-0.0003-0.05%
    AUDGBP=X
    0.6753-0.0003-0.05%
    AUDEUR=X
  • Commodities
    Commodities
    NamePriceChange% Chg