Harvey Norman, who earlier this month paid $55M for Clive Peeters, has reported a 4 per cent drop in sales. What is not known is how far sales on consumer electronics and IT products fell in the last quarter.
Like Dick Smith, Harvey Norman is blaming the withdrawal of the Federal Government stimulus package that saw consumers purchase TVs, home entertainment and PCs early in 2009.
In a statement issued to the ASX Harvey Norman said: “Computer sales weakened as the company cycled the small business tax break on top of the cash stimulus. Furniture and bedding continue to take market share despite the industry experiencing a slow-down with the dampened housing market.”
The company said that revenue from outlets open at least a year fell 3.4 per cent in the three months ended June 2010. Full-year sales, including New Zealand and Europe, rose 0.8 percent to $6.03 billion.
Harvey Norman shares fell as much as 3.6 per cent, the most since June 7, in Sydney trading.
Bloomberg said that the stock declined 2.7 per cent to A$3.55 as of 1:01 p.m. local time, extending this year’s decline to 16 per cent.