RETAILER Harvey Norman has reaffirmed its guidance of a 40 per cent rise in first-half pre-tax profit but has failed to provide commentary on the crucial Christmas trading period on the release of its latest sales performance.
Harvey Norman reported yesterday that sales for the six months to December 31 were $3.27 billion against $3.15 billion in the previous corresponding period, representing a lift of 4 per cent.
Like-for-like sales at its Australian, New Zealand, Slovenian and Irish retail outlets increased by 2.5 per cent.
Although the company said sales for the month of January had met expectations and that it remained cautiously optimistic about the next five months, it offered no details about trading for the weeks leading into Christmas.
Harvey Norman shares fell as much as 3 per cent in morning trade before closing down 10¢, or 2.7 per cent, at $3.62.
On Thursday, leading department store Myer reported its first-half and December-quarter trading performance, saying revenue for the second quarter had been flat on the previous corresponding period, following sales growth in the first quarter of 5.2 per cent.
It commented that December was a negative sales month, dragged lower by a poor result for its electrical department.
Harvey Norman has a large exposure to the electrical sector as well as computers and software products.
Harvey Norman said Australian sales for the first half were up 6.4 per cent while like-for-like sales were up 5.6 per cent when compared with the previous corresponding half.
It was hopeful of positive trading for the remainder of 2009-10 despite the absence now of the cash stimulus payments injected into the economy last year.
''Unaudited preliminary accounts for the period 1 July 2009 to 31 December 2009 indicate that profit before tax and minority interests for the consolidated entity for the six months ended 31 December 2009 should exceed the profit before tax and minority interests in respect of the corresponding period for the previous year, by in excess of 40 per cent,'' it said.
