Sales exceed $5.3 billion.
Gerry Harvey has come out on the front foot following a strong result for the 2016 Financial year, describing the result as “outstanding”.
“This is an outstanding result that once again demonstrates the strength of our integrated retail, franchise, property and digital business spanning eight countries,” Harvey said in a statement to the Australian Stock Exchange.
“Our franchisees have enjoyed sales to the value of $5.33 billion this year, a 7.6 per cent increase on sales in the 2015 financial year, demonstrating the strong position of Harvey Norman in the home and lifestyle market,” he said.
Harvey said franchisee sales growth remains strong in the home and lifestyle market underpinned by a resilient residential property market. Housing market conditions have been robust, responding positively to the reduction in interest rates in recent years.
“Population growth has also been an important driver of new dwelling growth and refurbishments of existing homes. The number of newly-approved dwellings has been above completions for some time which suggests a continuation of solid housing activity, particularly in New South Wales and Victoria,” he said.
Harvey Norman franchisees have capitalized on the growing category of connected devices forming a substantial part of the ‘internet of things’. With expectations of 6.4 billion connected devices in use worldwide this year, Harvey Norman expects to capitalize on this growth through its expertise in key product categories to meet this ‘all-encompassing’ lifestyle trend.
“From connected fitness to home automation to intelligent mattresses, franchisees are selling the devices and the technology so customers can connect their home, their work, their health and fitness and recreation. The possibilities are enormous and we see it as a sustainable retail trend that franchisees intend to be at the forefront of with the best service and expertise and leading products,” Harvey said.