Harvey Norman’s income plummet as COVID’s gross sales growth fades

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Furnishings and electronics large Harvey Norman noticed its gross sales and income fall for the primary quarter of the brand new monetary yr because it struggled to match the outcomes of final yr’s COVID-induced spending frenzy.

In a enterprise replace offered forward of its annual basic assembly on Wednesday, the chain led by Gerry Harvey advised buyers that whole gross sales from July 1 to November 21 fell 8.8 p.c. in comparison with the identical interval final yr. Pre-tax revenue and uncontrolled curiosity fell 35.5 p.c to $ 217.4 million within the quarter.

The corporate didn’t present any earnings forecast for the remainder of the yr, telling buyers that the pandemic had precipitated, and continued to trigger, “nice uncertainty in regards to the future economic system.”

Harvey Norman founder and president Gerry Harvey.Credit score:Janie Barrett

Harvey Norman was one of many best-performing retailers through the pandemic, with the corporate benefiting from elevated spending on dwelling workplace provides, the booming housing market and elevated basic demand for objects equivalent to and client electronics since individuals have been compelled to remain at dwelling.

Within the firm’s full-year outcomes earlier this yr, Mr. Harvey mentioned he was shocked by the efficiency of his enterprise, which reported an enormous leap of 78.8 p.c in annual earnings to $ 1.18 billion.

Nevertheless, the corporate has not been capable of preserve its document excessive within the 2022 monetary yr because it has been hit by current blockbusters in NSW and Victoria.

A complete of 168 franchised shops within the two states have been closed at numerous instances through the interval, though on-line and click on and accumulate companies continued. Warehouses within the ACT, New Zealand and Malaysia have been additionally affected by the blockades.

“Rolling blocks in most states and territories of Australia have affected gross sales within the months of July 2021 to November 2021, although the press and contactless assortment and residential supply operated.” , the corporate mentioned.

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