Harvey Norman’s staggering first-half end result

Harvey Norman’s staggering first-half result

2021-02-26 08:17:00

Retailer Harvey Norman has achieved document monetary outcomes, greater than doubling its first-half internet revenue, with chairman Gerry Harvey partly crediting the franchise’s success throughout the pandemic to spaciousness in shops and straightforward parking.

The franchise flagged the bumper end in September when it observed gross sales had gone gangbusters and at present confirmed a internet revenue for the six months to December 31 of $462m, up greater than 116 per cent on the earlier half-year end result.

“The shopper was appreciative of the procuring expertise, spaciousness and straightforward parking on the bodily franchised complexes and shops while embracing the convenience of connection to our manufacturers digitally and the essential comfort of dwelling supply and contactless click on and acquire,” Mr Harvey mentioned.

Remarkably, Harvey Norman has additionally extinguished its debt.

Web debt was $553.23m on the finish of 2019 however had became a close to $22m internet money place by the tip of final yr.

On prime of that, the chain has virtually $500m in unused, out there financing amenities, giving it the power to capitalise on alternatives.

Mr Harvey revealed final yr that the profitable technique had been to contact suppliers and purchase orders cancelled by different retailers as they closed their doorways, stockpiling an enormous stock in a transfer he described as “a calculated gamble”.

The corporate mentioned strong gross sales in whitegoods, televisions, dwelling workplace furnishings and small home equipment continued, whereas ongoing distant working saved computer systems and associated peripherals gross sales robust.

Harvey Norman mentioned the development of reworking backyards into out of doors entertaining areas additionally continued, with gross sales of outside furnishings and out of doors cooking merchandise remaining strong, whereas bedding and indoor furnishings was additionally promoting nicely as Australians spruced up their interiors.

In direction of the tip of 2020, the launch of PS5 and Xbox Collection X consoles boosted the gaming class.

The franchise mentioned optimistic momentum continued into the second half, with aggregated gross sales income up 21 per cent, pushed by shops in Eire, Australia and New Zealand.

Noting the robust uptake of HomeBuilder grants – triple the federal authorities’s preliminary expectations – Harvey Norman mentioned the surge in new dwellings and main renovations may “open new alternatives and drive gross sales all through 2021 and past”.

The corporate declared a completely franked interim dividend of 20 cents after cancelling the earlier mid-year payout to shareholders in April because the pandemic took maintain.

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