Sharechat Logo

Harvey Norman's NZ 1H sales, earnings fall on weak retail climate

Wednesday 29th February 2012

Text too small?

Harvey Norman, Australia's largest electrical goods retailer, said sales and operating earnings fell in New Zealand in the first half, reflecting a combination of natural disasters and the “challenging retail climate.”

New Zealand sales fell 3.7 percent in the six months ended Dec. 31, in Australian dollars, while operating profit fell to A$20.6 million from $20.7 million a year earlier. In New Zealand dollar terms, sales fell 3.5 percent and operating profit fell 0.4 percent.

“New Zealand's challenging retail environment was further exacerbated by store closures in Christchurch arising from the earthquakes,” the company said in a statement. “The New Zealand operations are robust, being the market leader across all major product categories.”

Harvey Norman said it expects positive results from New Zealand, despite the upheavals caused by the earthquakes and despite “intense competition.”

Harvey Norman's total first-half net profit fell 2.1 percent to A$129 million which chairman Gerry Harvey blamed on intense competition, price deflation in key categories, the strong Australian dollar and “a prudent consumer.”

Shares of Harvey Norman fell 6 percent to A$2.03 on the ASX and have climbed 17 percent so far this year.

Harvey said he is pleased with the company's performance in New Zealand.


  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares edge lower; power companies under pressure
NZ dollar rises as bets on another OCR cut fade
Broad-based manufacturing pick-up offers silver lining
Global economic outlook not as dark as in August: RBNZ
NZ dollar slips on slew of weak global data, lack of US-China progress
MARKET CLOSE: NZ shares recover as investors re-think RBNZ review
NZ dollar falls on weak Aussie jobs numbers, poor China data
Govt media plan won't weaken commercial players - TVNZ
Goodman trust's 1H net profit quadruples on unrealised property gains
Regional house price inflation accelerates in October

IRG See IRG research reports