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Harvey Norman Tip 20% Profit Lift After Lockdown Boom

Harvey Norman has advised the market it’s expecting a pre-tax profit lift of around 20% for fiscal 2020, following a surge in home and tech purchases amidst coronavirus lockdown measures.

The furniture and technology retail group is slated to release full-year results on August 28.

The news was disclosed in an ASX announcement today, and follows a sales uptick in whitewoods and kitchen appliance sales prompt by home-bound consumers.

The retail group states unaudited preliminary accounts for 1 July 2019 – 31 May 2020 indicate a 20% jump in profit before tax and non-controlling interests [excluding leases net impact and net property revaluation adjustments] for the consolidated entity versus the previous corresponding period.

It comes after Harvey Norman partially reinstated its interim dividend – 6 cents per share on June 29 – after initially cancelling it amidst concerns of the economic impact of COVID19. 

The company previously flagged strong sales for the months since March, with chairman Gerry Harvey asserting buying trends remained similar across its other global locations alongside coronavirus lockdown measures.

As previously reported, Mr Harvey recently revealed whitegoods panic buying was rampant, with the retail group reportedly selling out of every freezer in the country for a moment. 

The news comes after Harvey Norman’s Australian franchisees reported a 17.5% lift in second half sales, despite overseas drops amidst store lockdown rules.

Shares in Harvey Norman are currently trading up 4.63% to $3.6 before midday.

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