Harvey Norman’s positive sales momentum is continuing, with the storied electronics retailer lauding its franchise model amid a “competitive” retail environment.
Passing the $5 billion mark in half-year sales for 2026, Harvey Norman’s 6.9 per cent sales lift was complemented by an ongoing reduction in expenditure.
Bringing operating expenses down to 17.8 per cent of total sales, Harvey Norman managed to achieve a year-on-year, after-tax profit increase of 15.2 per cent. The retailer took home $321.9 million in this category.
“This is a very solid first-half result, with profit growth driven by higher system sales, disciplined cost control and strong performances across our franchising operations and overseas retail businesses,” said chairman Gerry Harvey.
“Australian franchisees grew sales, and our overseas retail businesses continued to increase sales and overall profitability.”
The 4.8 per cent increase in Australian franchisee sales, to $3.5 billion, now accounts for around 70 per cent of Harvey Norman’s sales.
But the company continues to push its overseas expansion.
“Our overseas retail businesses delivered meaningful profit growth this half, reflecting improved trading conditions in several markets, disciplined execution and the benefits of recent store investments,” Harvey added.
Across New Zealand, Ireland, Slovenia, Croatia, Singapore and Malaysia, the overseas division delivered an after-tax profit of $92 million, a 35.6 per cent increase.
Progress in the UK has affected costs, Harvey Norman said, as the company continues to establish its Merry Hill flagship.
This article was first published on Inside Retail.
