Harvey Norman reported that its aggregated sales revenue for the period July 1 to October 31 increased 6.9 per cent, despite inflation causing the retailer to hike prices on most of its stock.
Comparable sales were up 6.3 per cent during the period.
In a trading update issued before the company’s AGM today, it said sales have been negatively impacted by the depreciation in the euro, pound and NZ dollar, but have been offset by appreciation in the Singaporean dollar and Malaysian ringgit.
While a 6.9 per cent sales revenue jump may seem like a robust rise, the consumer price index, used by the ABS to measure inflation, rose 7.3 per cent over the twelve months to the September quarter.
The category ‘Furnishings, household equipment and services’ rose 7.7 per cent, with furniture prices jumping 11.4 per cent.
Given these are the categories Harvey Norman deals in, this amounts to lacklustre sales growth, if any, for the financial year-to-date.
The stock market has reflected that outlook this morning, with Harvey Norman shares dropping 1.9 per cent before noon.
