Harvey Norman sales grow despite cost-of-living | Australian Markets

Harvey Norman government chairman Gerry Harvey says he’s shocked at how effectively gross sales have held up regardless of cost-of-living pressures.

The retailer’s 198 Australian franchised complexes recorded gross sales of $3.34 billion within the six months to December 31, up 5.5 per cent from a 12 months in the past.

That momentum has continued into the new 12 months, with Australian gross sales up 2.4 per cent in January and up 7.2 per cent within the first 21 days of February.

“I thought July-December would be pretty difficult, with all this cost-of-living thing going on, and inflation and higher interest rates and all that,” Mr Harvey informed AAP on Friday.

“But it wasn’t – it was actually better than I thought. And it accelerated in November, December. And then I looked at January, February sales, and I thought, it’s continuing. Retail’s not contracting to the degree I thought it might – it’s actually improving.”

Mr Harvey attributed the gross sales resilience to rising wages, a million more people in Australia, and the third of Australians who own their own houses mortgage-free.

“The ones that are screwed are the third of the people that rent – they’ve got no money, and they’re surviving just to pay their rent. But when you put the whole of that together, you end up with more money that’s going into the economy.”

Total, Harvey Norman reported a first-half revenue of $400.3 million, up 41.2 per cent from a 12 months in the past, though that was pushed principally by property revaluations. Excluding that affect, revenue was up 2.2 per cent to $310.5 million.

Harvey Norman declared a totally franked dividend of 12 cents per share.