It’s not good news for Harvey Norman after the company reported a 20.3 per cent drop in profits for the first quarter of the 2013 financial year, as a result of decreases in sales.
The company’s profit before tax and minority interests for the period of 1 July to 30 September 2012 was $50.1 million compared to $62.8 million for the prior corresponding period.
“Technology and entertainment sales continue to be affected by the cautious consumer and continued price deflation. Harvey Norman franchisees continue to drive their number one market share in television,” Chris Mentis, chief financial officer, said in a statement.
During the three months, global sales decreased 10 per cent to $1.33 billion in comparison to the same period last year. On a like-for-like basis it was a 7.8 per cent decrease.
More specifically, Australia’s total sales for the quarter were down 11.5 per cent, which was the largest fall in the company’s markets. While in a like-for-like basis it was down 8.7 per cent.
When the company took into account excluded the sales from the discontinued Clive Peeters and Rick Hart business, the total sales were down 5.4 per cent and 8.7 per cent like-for-like for the quarter.