Retailer Harvey Norman Sees Profits Drop 40%

Australian Retailer, Harvey Norman (ASX:HVN) announced on Monday that full year pre-tax profit to June 30, 2012 was likely to be down 40 percent. The announcement to the stockmarket said that unaudited preliminary accounts for 2012 indicated a profit before tax and minority interests of $227.6 million compared to the $373.9 million profit in 2011 (down 39.1 percent).

Harvey Norman has stores in Australia, New Zealand, Slovenia, Croatia and Ireland. Global sales by the company was $5.74 billion, down 7 percent. Australian-for-like sales dropped 7 percent while Global-for-like sales dropped 6.5 percent. These figures exclude the impact of stores which ave opened or closed in that period of time.

The electrical and homewares retailer has said that global sales were negatively affected by a 6 percent fall in the Euro and a 4.7 percent fall in the UK pound but benefited from a 1.7 percent rise in the New Zealand dollar during the financial year. HVN home appliances, furniture and bedding sales have remained stable and is well placed for any possible uplift in the housing market.

On the sharemarket, Harvey Norman shares closed at $1.975, up 0.25 percent. HVN had issued a fully franked final dividend of 6 cents on 28 October 2011.