Margins are under pressure but Harveys is seeing growth

Despite the current economic conditions Harvey Norman has witnessed a very positive sales period for the year ending 30 June 2009, with a 3.8 per cent increase over the period.

According to the ASX release Harvey Norman Holdings Limited recorded sales from its franchised Harvey Norman stores, commercial divisions and other sales outlets in Australia, New Zealand, Slovenia and Ireland totalling $6.03 billion, this is a 3.8 per cent increase from the $5.81 billion recorded for the year ending 30 June 2008.

In addition to this like for like sales grew 1.4 per cent for the year ending 30 June 2009.

Harvey Norman also performed strongly on a quarterly basis with sales reaching $1.49 billion for the fourth quarter ending 30 June 2009. When this is compared with the period 1 April to 30 June 2008, it represents a 4.5 per cent growth.

In comparison to the same corresponding period like for like sales were also on the increase with a rise of 2 per cent.

On the local front Harvey Norman performed even stronger with a 6.7 per cent increase in sales in the fourth quarter and like for like sales also performed strongly with an increase of 5 per cent over the quarter.

“Given the current macroeconomic conditions, retail margins continue to be under pressure,” said Chris Mentis, Harvey Norman chief financial officer.

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