Harvey Norman

Harvey Norman sees sales and profits slide

Harvey Norman’s revenue fell 3.8 percent in the three months to September 30, with its Australian, Kiwi, Slovenian and Irish franchises generating sales of $1.48 billion.

Harvey Norman’s Australian franchises saw a 2.9 percent decrease in total sales for the first quarter of the financial year, compared to the 2011 first quarter, and a 2.8 percent decrease between the same periods for like for like sales.

Comparatively, New Zealand saw a 10.2 percent decline in total sales for the 2012 first quarter against the 2011 first quarter, and a 10.6 per cent drop within the same quarters for Like for Like sales.

Profit before tax and minority interests for the period totalled $62.8 million, down from $77.7 million in the previous corresponding period – a fall of 19.3 percent or $14.9 million.

The retailer attributes the closure of four Clive Peeters and three Rick Hart stores as factors behind the falls. It also said retail gross profit margins, price deflation, and the Australian dollar were strong contributors to the decline in sales and profits, and in the reduction of overall franchise fees.

Harvey Norman also reported on a number of new complexes opened this October as part of their integrated franchise, retail and property strategy.

Locations include the homemaker complex, Springvale in Victoria, 10,000m2 superstores in both Croatia and Slovenia and the new SPACE Asian hub in Bencoolen Street, Singapore.

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