Harvey Norman profit falls 32pc

    by: By John Dagge
    From: Herald Sun
    August 31, 2012


Harvey Norman's share price has more than halved since September 2009.

HARVEY Norman continues to feel the retail pain, announcing profit has dropped by close to a third.   

Net profit fell to $172.5 million from $252.3 million in the year to June, driven down by relentless discounting of electronic goods, low consumer spending and customers migrating to online shopping.

Chairman Gerry Harvey said the result was "very disappointing''.    

"Retail categories, specifically the television and some technology categories, have been under enormous pressure with price and margin deflation,'' he said.

Mr Harvey said the liquidation of WOW Sight and Sound, the closure of numerous Retravision stores and the restructure of the Dick Smith brand created "a glut of product being sold at never before seen prices''.

Mr Harvey said the company's bricks and mortar stores gave it a competitive advantage over pure online retailers.    



"Our balance sheet is robust and we have a low net debt to equity ratio of 26.6%,'' he said.

"We have a property portfolio valued at $2.12 billion which provides strength and stability to our balance sheet. Property ownership offers a distinct advantage over our competitors as it provides us with a reliable income stream in an uncertain retail climate.

The company's share price has more than halved since September 2009 however it rose by close to 1 per cent to $2.12 in early trading.

The company will pay a fully franked final dividend of 4c per share on December 3 to shareholders on the company's register at November 2.

Earlier this month competitor JB Hi-Fi announced its net profit before one-off costs for the year to June fell 22.1 per cent to $104.6 million.

god that will make rusty and adels day thats for sure..they cant wait for H.N. to go out of business.

cods wrote on Sep 1^st, 2012 at 7:14am:



Me too cods, I'll be crying buckets of tears, tears of laughter.

Quote:


That's why he is doing so well and whinges and whines about online sellers

and every single poster on this thread (until me) it the perennial loser. unemployed or barely employed, living in a rented room driing a 4 coloured panel commodore.

yeah go ahead and mock Gerry Harvey. Even when he is in trouble he is a BILLIONAIRE. and you lot are...

enjoy your irrelvant poverty!!

gold_medal wrote on Sep 1^st, 2012 at 1:09pm:



The (until me) was the funniest part.

BWAAAAHAAAHAAA!!!!!

cods wrote on Sep 1^st, 2012 at 7:02pm:

Yeah much more Aussie to rip people off and benefit from ignorance.

gold_medal wrote on Sep 1^st, 2012 at 1:09pm:


is that a billionaire with or without the injection of shareholders funds ??

just remember where this dude was before he got his fistful of dollars courtesy of gullible investors !! Would you sink billions into this company ?



Not much better than Arthur Daley LOL