Harvey Norman Bumpy Ride – Sales Slump 10%

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Things aren’t looking up for Harvey whose global sales figures, released today, slumped to $1.33 billion for the first fiscal quarter 2013.
The figure for the July- 30 September (Q1 2013) includes sales from the franchised “Harvey Norman” stores in Oz, New Zealand, Slovenia, Croatia, Ireland and Northern Ireland (excluding Singapore) and its other commercial divisions.

Total sales decreased 10% compared to the same time in 2011, the retailer confirmed, blaming the deterioration in the Euro, UK pound citing “the cautious consumer and continued price deflation,” which has hit demand for electronics.

Like-for-like store sales slumped 7.8%, although when adjusted for the discontinued Clive Peeters and Rick Hart stores (7 closed, 9 rebranded), the sales decline looks slightly better at 4.6%.

Australia (-11.5%), Ireland (-2.9% ) and New Zealand ( -1.3) showed the biggest sales decline, while Slovenia and Northern Ireland were up 26% and 6% respectively.

Harvey’s profit before tax also slumped 20% to $50.1 million compared to $62.8m for the corresponding period, preliminary figures also show.

The latest figures for Q1 2013 show Harvey isn’t faring any better than they did in 2012, which showed a full year profit decline of 32%,  global sales down 7% and Oz sales slumping 8%.

But despite the slump, the retail chain is talking up its operation and says its franchisees will “continue to drive their number one market share in television.”

It also referred to the launch of 35 devices running Windows 8 and said white goods, cooking and small appliances remain “solid.”

 

Harvey Norman is also putting big hopes into its new Maroochydore Homemaker Centre located on the Sunshine Coast, as part of its integrated franchise, retail and property strategy.

The centre, opening Monday the 2th of November, will comprise of 20 shops, will include Harvey Norman, Domayne and Joyce Mayne along with other retailers such as Nick Scali, Plush, The Good Life Health Club and The Outdoor Furniture Specialists.

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