Harvey Norman has capped off the earnings season with a standout performance, posting a full-year profit before tax of $753.1 million.

That was up 39% and well ahead of market forecasts. Revenue climbed to $9.35 billion. Investors rewarded the result, driving the stock up 10%.

The retailer’s Australian franchisee stores delivered a 25.9% increase in profit before tax to $344.4 million, driven by robust sales in mobile devices, computers, and other AI-related goods.

Executive chairman Gerry Harvey was characteristically bullish, declaring his company a beneficiary of the AI revolution.

“AI is bringing a lot more people into our stores, not just in Australia, but all the other countries we’re in as well, so we’re looking at the next 12 months as being pretty strong,” he told the AFR.

“The thing that’s best for us is that the AI revolution is coming into play and we [are] a big player in that and [we could be] a big, big beneficiary of that”.

Harvey’s optimism isn’t just down to Australian consumers belatedly loosening their purse strings a little.

He argued mainstream adoption of next-gen PCs and consumer electronics would underpin strong growth for a long time to come.

Harvey Norman is one business unworried by the AI revolution

“We have made significant strides in enhancing our digital, online, and in-store experiences, alongside the strategic expansion of our global store network and targeted investments in key segments,” Harvey told investors.

“The continuing innovation and mainstream adoption of Next Gen-AI PCs and devices are expected to drive further sales growth in the Home Appliances, Television, Audio, Mobile and Computer Technology categories through FY 2025 and beyond.”

The 85-year-old entrepreneur also pointed to Harvey Norman’s balance sheet as a key competitive advantage, noting that total assets have topped $8 billion, underpinned by $4.5 billion in freehold property.

“Our strong balance sheet, low gearing ratio and substantial cash reserves provide the flexibility and capacity to seize the opportunities as they arise,” he noted.

While not necessarily as bullish as Harvey on AI, analysts agreed that the future looks bright for Harvey Norman.

The uptick in consumer demand and a strengthening housing market suggest retailers can finally expect some good times, after the disruption of the post-Covid era.

Harvey is certainly banking on AI to keep tills ringing. If that happens, he may delay his retirement further

“By the end of 2030, if we’re not making money, [we] will retire. But if we do make money, then we’ll just expand,” he said.