Harvey Norman grows sales despite pressures

Harvey Norman grows sales despite pressures

Harvey Norman (ASX:HVN) has revealed its global sales grew 1.3% in the first half to $3.31 billion.

But like-for-like sales, the proportion that are comparable to Harvey Norman's activities during 1H10, fell 3.1%,

Harvey Norman's computer sales fell during the half in what the company said was a very competitive market driven by cautious consumers.

But the company said it expected this segment of its business to bounce back in the rest of FY11 due to the expected growth of tablet sales.

Consumer electronics sales were meanwhile hit by a 30% price deflation in the segment.

The company said its earnings were also impacted by a deterioration in several currencies, including a 2.9% depreciation of the New Zealand dollar and 16.1% for the Euro.

Revenue from New Zealand and Ireland declined in constant currencies, while Australian, Slovenian and Northern Ireland sales grew.

Rival JB Hi-Fi had earlier revealed its own revenue had grown 8.3% over the same period, to $1.68 billion. The upswing helped the company increase its profit 15.6% to $87.9 million.

HVN shares fell 1.68% during Friday's trading to $2.920.

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Tags retailJB HiFifinancial resultsHarvey NormanASX:HVNASX:JBH

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