FitBit Flex Helps Harvey Norman As Sales Surge For One Week Prior To Xmas Now Stock Surges
Harvey claims that the Company had a “big surge” in sales over the Christmas-New Year period and that there was “big demand” for the new wearable Fitbit Flex.
At the recent CES Show in Las Vegas Harvey Norman executives approached several vendors looking for exclusive deals on several products in an effort to out do JB Hi Fi.
The surge in Harvey Normans share price to $3.69 prompted a “please explain” from the stock exchange.
“The situation is since the Christmas period and New Year, we had a big surge in sales,” Mr Harvey told Fairfax Media.
“We have just got back after being up the Gold Coast [at Magic Millions]. Merrill Lynch upgraded us on several factors [on Wednesday].
“The stock is up [on Wednesday] morning and we got a call from the ASX asking us what it was all about. The big sales increase was in the December-January period. It’s only a week, and there are 52 weeks in a year, but it’s a positive sign.”
Merrill Lynch analysts Michael Courtney and David Errington lifted their call to a “buy” and increased their price target to $4 per share. They also lifted net profit estimates by 5 per cent to $263 million and are 7 per cent ahead of consensus forecasts for $247 million.
Gerry Harvey told Fairfax Media that there were several factors supporting his business this year, such as lower petrol prices and a re-bound in the US economy.
“There are a lot of positive things, like the US has picked up a lot. Unemployment rate is down to under 6 per cent, whenever the US goes well, Australia generally follows suit. Europe is not that great,” he said.
“But the big drop in petrol prices, that’s good … it’s a psychological thing.”