Harvey Norman's Australian franchisee sales just went negative

Moore Park Supa Centa/ Steve Mavin via Google Maps
  • Harvey Norman says Australian franchisee sales fell 1.3% between July 1 and November 23.
  • This represented a 0.2% drop on a comparable basis.
  • Wholly-owned company-operated stores, in Australia and overseas, reported sales of $2.88 billion, a 2.7% rise. Comparable store sales were up 3%.

Sales at Harvey Norman’s Australian franchisees fell 1.3%, the biggest generator of revenue at Harvey Norman branded stores, in the first part of the 2019 financial year.

The company, releasing sales numbers for July 1 to November 23 ahead of its AGM, noted that “sales made by franchisees in Australia are not made by Harvey Norman Holdings Limited or controlled entities”.

On a comparable basis, the fall was just 0.2%. Harvey Norman didn’t give a dollar value for franchisee sales.

In the 2018 financial year, aggregated Australian franchisees sales were reported to be $5.76 billion, up 2.6%. Comparable sales were 2.2% higher.

However, profit from franchising operations, with 540 franchisees, in 2018 was down 7.2% to $282.54 million.

For the full year company-operated revenue was $1.99 billion.

Today, Harvey Norman report a rise in sales from July to November 23 for wholly-owned company-operated stores.

The home and lifestyle retailer reported aggregated sales from wholly-owned company-operated stores in New Zealand, Slovenia, Croatia, Ireland and Northern Ireland, majority-owned stores in Singapore and Malaysia, and from independent Harvey Norman, Domayne and Joyce Mayne branded complexes was $2.88 billion, a 2.7% rise.

Comparable aggregated Sales increased by 3%.

In early trade, Harvey Norman shares were up 2% to $3.07.

Sales reported today by Harvey Norman:

Harvey Norman

From July to November 23, one Joyce Mayne franchised complex was opened in Australia, one company-operated store was opened in Malaysia and one Harvey Norman franchised complex was closed in Australia.

No company-operated stores were closed.

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