Sky-High Prices = Sky-High Profits? Harvey Norman Profit Soars
It appears to be a case of sky-high prices and sky-high profits for Harvey Norman, with the retailer, which has been slammed over its “obscene” prices, today reporting a half-year 30.7 per cent jump in net profit after tax.
As recently reported by ChannelNews, shoppers have questioned Harvey Norman pricing, taking to social media to air their grievances, yet it appears that the Harvey Norman tills have been keeping more than busy.
Harvey Norman today reported net profit after tax of $185.51 million for the 2016 first half, up year-on-year from $141.98 million.
This came in the context of half-year global sales rising 8 per cent year-on-year to $3.33 billion, up 8.7 per cent on a like-for-like basis, with headline Australian franchisee sales revenue increasing 7.7 per cent to $2.72 billion, up 8.8 per cent on a like-for-like basis.
All of which has led Harvey Norman chairman Gerry Harvey to describe it as “an outstanding result”.
“Harvey Norman is a homemaker, lifestyle and connected home retail concept and the appeal and strong positioning of the franchise offering is apparent in these results today,” Harvey commented.
And it appears further good times are on the way.
“Our franchisee’s enviable same store sales growth record illustrates the discipline and hard work that goes into our stores, as well as our strong understanding of the market, and this work will continue,” Harvey commented.
“Harvey Norman franchisees are well positioned to continue to grow and to bring their loyal customers the best products for the modern home and lifestyle.”
Harvey noted that over the last three years Australian macroeconomic conditions have had an upward trend, which has been “favourable for consumption in the homemaker and lifestyle categories”.
“We anticipate robust construction and housing activity to continue this year, in response to pent-up demand and, particularly in New South Wales, Victoria and the ACT, dwelling starts are materially above long-term averages,” he commented.