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Harvey Norman Oz Franchisee Q1 Sales Slump

Disclosed to the ASX ahead of today’s AGM, Harvey Norman has reported a 1.3% year-on-year drop in aggregated sales for Aussie franchisees.

For the period July 1 to November 23, comparable aggregated sales remained relatively flat (-0.2%) versus the previous year.

Contrasting its local operations, Harvey Norman New Zealand post a 4.7% YoY jump in total aggregated sales.

Its Malaysian subsidiary reported a whopping 65.4% YoY increase in aggregated total sales, and 47.3% YoY lift in aggregated comparable sales.

[Harvey Norman]

“Aggregated sales” refer to sales from wholly-owned company operated stores in New Zealand, Slovenia, Croatia, Ireland, majority-owned controlled company-operated stores in Singapore and Malaysia, plus independent Harvey Norman, Domayne and Joyce Mayne branded franchised complexes.

For the period July 1 to November 23, aggregated sales totalled $2.88 billion – a 2.7% YoY increase.

As disclosed to the ASX, comparable aggregated sales for the period climbed 3% year-on-year.

Sales made by franchisees in Australia are not made by Harvey Norman Holdings Limited or controlled entities.

During the period, the retail conglomerate opened one Joyce Mayne franchised complex in Australia, and closed one local Harvey Norman franchised complex.

No company-operated stores were reportedly closed during 1 July to 23 November 2018.

The news comes as analysts – such as USB – warn against tough Christmas trading conditions, driven by tightening household budgets and weak income growth.

Analysts claim a weakening housing market, plus rising energy and fuel costs could hurt discretionary retailers such as Harvey Norman this holiday season.

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