Harvey Norman's first-half earnings slump
Harvey Norman posts weak first-half earnings following scarce and challenging retail conditions.
Australia’s largest electrical goods retailer, Harvey Norman, has said sales and operating earnings fell in New Zealand in the first half, reflecting a combination of natural disasters and the “challenging retail climate”.
Sales for New Zealand fell 3.7% in the six months ended December 31 (in Australian dollars), while operating profits fell to A$20.6 million from A$20.7 million a year earlier.
In New Zealand dollar terms, sales for the company fell 3.5% with operating profit falling 0.4%.
“New Zealand’s challenging retail environment was further exacerbated by store closures in Christchurch arising from the earthquakes,” the company said in a statement.
“The New Zealand operations are robust, being the market leaders across all major product categories.”
The company says it expects positive results from New Zealand, despite the upheavals caused by the earthquakes and despite “intense competition”.
Harvey Norman’s total first-half net profit fell 2.1% to A$129 million which chairman Gerry Harvey blamed on intense competition, price deflation in key categories, the strong Australian dollar and “a prudent consumer.”
NBR Staff
Wed, 29 Feb 2012
Wed, 29 Feb 2012
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Harvey Norman's first-half earnings slump
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