JB Hi-Fi V Dick Smith V Harvey Norman: Who Wins?
The three big CE retailers; Dick Smith and JB HiFi and now Harvey Norman have released its half year figures showing an electronics sector is definitely in recovery.
Harvey Norman, whose business has been in the doldrums for some time today reported Australian retail franchise had grown during the six months to December 31, with NPAT profits up 36%, although rose just 3.6% after property reevaluations.
Harvey Norman today said HY14 sales in Australia rose 1.4% and like-for-like was up 3.3%, with a marked improvement in Q2.
Compare this to JB Hi-Fi total sales up almost 7% to $1.94 billion to the six months to December 31, buoyed by increased demand in appliances, iPads and gaming consoles. During the six months it opened several new Home Stores, with plans to convert several more electronics outlets.
In January, JB Hi-Fi sales momentum lifted 7.4%, like-for-like rose almost 4%.
However, there wasn’t such good news over at Harvey’s last month, with “flat” sales in Australian franchises with LFL sales up just 1.4%.
Harvey Norman global sales for six months to December hit $2.99bn including Australia, New Zealand, Northern Ireland, ROI and Slovenia operations.
The better performance of the euro, NZ dollar and the GBP pound also helped a recovery in its international operations.
During the six months in Australia, three HN franchises and one Joyce Mayne closed.
Newly floated Dick Smith HY13 profits were up to $25m (up from $6.7m) and sales rose to $637m or 52% of FY14 forecast, better than expected results for the retailer who’s new owners has transformed the business in the past 18 months. DS plans to open more than 50 new stores by end of the financial year.
However, like-for-like sales fell 1.3% in Australia, reflecting underlying discounting experienced in H1 2013, and also fell 26% in NZ.
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