Harvey Norman Continues to Struggle

Harvey Norman is continue to struggle in the uphill battle against online competition. The latest pre-tax profit of the retail company is down by 25 percent. The data covers the first nine months of the fiscal year and it appears that sales continue to fall 2012’s first quarter. 

On the back of the profits downgrade, company shares also fell 10 cents from $2.07 to $1.97 or a 4.8-percent decline. 

Based on records, Harvey Norman’s profit June 2011 to March 2012 was posted at $204.8 million. The number is smaller compared to $272.3 million of the previous fiscal year. The profit indicated is before minority interests and taxes. 

Harvey Norman blames the business slowdown to stiffer competition in the audio/video and information technology sectors. 

Globally, the trend is also the same. From January to March 22, global like-for-like sales declined 3.8 percent compared to 6.6 percent of the same period last year.

Like-for-like sales in the country also fell 2.8 percent covering the period of January to March 2012. Australian sales are affected by the declining price of technology products like TVs and gadgets, no thanks to a strong dollar and tougher competition. 

Harvey Norman is one of the largest retailers in the country that markets computer, furniture entertainment, bedding and electrical goods. There are currently close to 250 stores all over the world, including New Zealand, Ireland, Malaysia, Singapore, Croatia and Slovenia. It also has an online store called Harvey Norman Direct Import, which is based in Australia. 

The Harvey Norman brand is owned by Harvey Norman Holdings Limited, the same company that franchises Space Furniture, Joyce Mayne, Ariston Appliances, and Domayne.

Tagged Harvey Norman