Harvey Norman OZ Sales Up 33% *Profits Up 185%
Like JB Hi Fi Harvey Norman is experiencing a sales boom with the Company reporting a 33.8% lift in their Australian sales operation, profits have rocketed by 185%.
Across their wholly owned company-operated stores in New Zealand, Slovenia, Croatia, Ireland and Northern Ireland the big retailer reported a 30.6 lift in sales for the period 1 July 2020 to 17 September 2020 when compared to the same time last year.
Executive Director at Harvey Norman David Ackery has been telling brands that Harvey Norman expects the easing of Stage four Restrictions in Victoria will commence from October 26 and that the big retailer is expecting sales to remain buoyant as long as Australians are restricted from flying overseas.
Harvey Norman shares that last traded at $4.35 jumped 4.5% on the news and at 11.15am was trading at $4.53.
*Unaudited preliminary accounts for the period 1 July 2020 to 31 August 2020 indicate profit before tax have jumped by 185.8% compared to $62.3 million for the prior corresponding period.
While the franchisees introduced Click & Collect and contactless deliveries, the sales turnover of impacted affected franchisees in greater Melbourne “have been adversely affected by these mandated closures,” Harvey Norman said.
Harvey Norman expects the easing of Stage four Restrictions in Victoria will commence from October 26.
Sales growth in Australia would have been even higher if many of their Victorian stores were allowed to trade.
18 Harvey Norman and Domayne stores in Melbourne have been closed since August 6 under stage 4 lockdown laws.
In New Zealand, same-store sales rebounded 18 per cent in the 10 week period, rising 23.5 per cent in July and 13.9 per cent in August after falling 7.8 per cent in the June quarter, when stores were forced to close for about eight weeks due to coronavirus lockdowns.
Ireland was the stand out, with same-store sales soaring 55.1 per cent in the 10 weeks to September 17 after rising 54.9 per cent in July and August and 29.2 per cent in the June quarter, while Northern Ireland returned to growth, with sales rising 23.6 per cent after falling 56.5 per cent in the June quarter.
Singapore and Malaysia sales remain weak but momentum is improving. Singapore sales rose 3 per cent in July and August but fell 3.8 per cent in the 10 weeks to September 17 after plunging 48.4 per cent in the June quarter.
Malaysia sales fell 5.1 per cent after a 15.7 per cent decline in the June quarter.
In Slovenia and Croatia, same-store sales growth accelerated to 27.2 per cent in the 10 week period after growing 3.5 per cent in the June quarter.
Harvey Norman last traded at $4.35, just off a six-month high of $4.45.