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Harvey Norman Sales Up not Profit

published  First Published: 16/10/2009
Article written by: Nigel Brookson
The chairman of Harvey Norman says the company's profit margin is not seeing much benefit from improved electrical goods sales linked to the strengthening Australian dollar.
 
The retailer's domestic and international franchises, commercial divisions and other outlets recorded total sales of $1.5 billion in the three months to the end of September.
 
That is an increase of 4.3 per cent from the same period last year but fell short of market expectations for a rise of 6.3 per cent.
 
But Gerry Harvey says while unit sales may be up, takings are down as prices decrease rapidly.
 
"Everything's cheaper to bring into the country," he said.
 
"If the dollar goes to parity, which it looks like that's where it's headed, everything will be cheaper to bring in.
 
"It's a very competitive industry that we're in. Even if you wanted to keep margins you can't, so prices will just continue to drop."
 

 

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