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

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Broker Notes

3 ASX shares catching broker upgrades this week

Analysts are turning more constructive on these names.

Read more »

People sit in rollercoaster seats with expressions of fear, terror and exhilaration as it goes into a steep downward descent representing the Novonix share price in FY22
Opinions

Are you invested in ASX 'volcano' stocks?

ASX volcano stocks can be very volatile and sometimes exciting.

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Technology Shares

Is the WiseTech share price heading for $200?

The path is set, according to one broker.

Read more »

Three women cruise along enjoying ice-creams in the sunshine.
Best Shares

3 ASX 300 stocks up by more than 300% in a year

These stocks certainly add up to a triple treat.

Read more »

A happy male investor turns around on his chair to look at a friend while a laptop runs on his desk showing share price movements
Broker Notes

Goldman Sachs says these ASX 300 stocks can rise 15% to 30%

Let's see what the broker is saying about these buy-rated stocks.

Read more »

Business woman watching stocks and trends while thinking
Share Market News

5 things to watch on the ASX 200 on Wednesday

A better session is expected for Aussie investors today. Here's what's happening.

Read more »

A man looking at his laptop and thinking.
Share Gainers

Here are the top 10 ASX 200 shares today

ASX investors were pulled back down to earth this Tuesday.

Read more »

A woman faces the camera with her lip raised up to the side in total confusion.
Bank Shares

Why is the CBA share price being hit so hard today?

Has CBA's luck finally run out?

Read more »