Harvey Norman share price edges lower on sales update

The Harvey Norman Holdings Limited (ASX:HVN) share price is X following the release of its sales update…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In morning trade the Harvey Norman Holdings Limited (ASX: HVN) share price has edged lower.

At the time of writing the retailer's shares are down slightly to $4.31.

Why is the Harvey Norman share price heading lower?

Ahead of its annual general meeting in Sydney, Harvey Norman released a sales update.

According to the release, the aggregated sales from wholly-owned company-operated stores and from independent Harvey Norman, Domayne, and Joyce Mayne branded franchised complexes totalled $2.44 billion for the period July 1 to October 31.

This was an increase of 2% on the aggregated sales generated in the prior corresponding period. Comparable aggregated sales for the period increased by 1.7%.

Some of this gain is attributable to favourable currency movements. The British pound, Euro, Singaporean dollar, Malaysian Ringgit, and New Zealand dollar all strengthened against the Australian dollar.

A summary of how its businesses performed during the period can be seen on the table below:

harvey norman sales

What else happened at the annual general meeting?

Harvey Norman provided shareholders with a reminder of how it performed in FY 2019.

It delivered an 8.8% increase in reported profit before tax to $574.56 million, a 4.5% increase in earnings per share to 34.7 cents, and declared a 33 cents per share dividend.

It also noted that 23% of its profit before tax is now generated overseas. This looks set to continue growing in the coming years, with management seeing a major opportunity in the Malaysia market.

Harvey Norman

As you can see above, Malaysia appears to be a market which has the potential to cater to a much larger number of Harvey Norman stores compared to where it stands now.

This could be a key driver of growth in the future, helping to offset a potential slowdown in growth in the increasingly saturated Australian market.

Elsewhere on the market today, the JB Hi-Fi Limited (ASX: JBH) share price is trading slightly lower, potentially in response to this update.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Market News

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors started the week off in a good mood today.

Read more »

A cute young girl with curly hair sips a glass of milk through a straw with a smile on her face.
Broker Notes

Up 37% this year, why Macquarie expects A2 Milk shares to keep outperforming

Macquarie remains bullish on A2 Milk shares heading into 2026. Let’s see why.

Read more »

Woman and man calculating a dividend yield.
Share Market News

Big week for markets: Here's what to watch

Tech earnings, rate speculation, and Aussie inflation data could shake markets this week — but long-term investors should keep their…

Read more »

ASX shares Business man marking buy on board and underlining it
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

dissapointed man at falling share price
Share Fallers

Why Boss Energy, Elsight, Pilbara Minerals, and Whitehaven Coal shares are falling today

These shares are starting the week in the red. But why?

Read more »

An older female ASX investor holds a gangster-style fist pump pose showing off gold rings with dollar signs on them.
Broker Notes

Why Macquarie forecasts Northern Star shares are set to surge 55%

Macquarie believes Northern Star shares are well-placed to rocket higher.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Share Market News

ASX 200 tech stock near record high, is it still a buy?

This company's soaring share price and rising profits are turning heads.

Read more »

Excited couple celebrating success while looking at smartphone.
Share Gainers

Why Bellevue Gold, Bubs, Clarity Pharmaceuticals, and Regal Partners shares are rising today

These shares are starting the week on a positive note.

Read more »