Harvey Norman stems losses with sixth year of sales growth

Home and lifestyle retailer Harvey Norman stemmed losses last year after recording its sixth consecutive year of overall sales growth, recently filed accounts show.

The Australian-headquartered retailer recorded a loss before tax of €463,254 for the year ended June 30th, 2017, a reduction of 63 per cent on the previous year.

A business review for Harvey Norman Holdings (Ireland) Limited shows the company’s furniture and bedding categories were a growth area, recording double-digit growth in the year. That growth helped offset a softening in the technology and appliances categories.

Group turnover rose 0.9 per cent to €182.5 million, ultimately resulting in an operating profit of €917,408.

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"The directors are satisfied with the reduction in the underlying operating loss. The Republic of Ireland business doubled its profitability in 2017, and the ongoing restructure in our Northern Ireland business will contribute to a significant reduction in losses. The directors are confident that the group will return to overall profitability in the near term," the directors said in their business review.

“The growth in sales and market share in 2017 has not come through discounting or at the expense of margins. Resilient and continued growth within the furniture, bedding and interiors categories has been driven by a further shift from distribution to direct imports, increased representation of Irish-made products, and renewed investment in showrooms and marketing.”

Salary costs

Harvey Norman employed 881 staff in the period, up by 21, while salary costs came in at €26.65 million, up 4.5 per cent.

The company operates 13 outlets in the Republic and two stores in Northern Ireland. Its 13th store in the Republic was opened last year after it acquired a 60,000sq ft facility in Tallaght's Airton Retail Park.

Harvey Norman’s ultimate parent undertaking is the Australian incorporated Harvey Norman Holdings Limited.

In terms of future outlook, the company said its investment in digital and the resultant growth in online traffic and sales had aided both “the online and offline business”.

That investment came as a result of the “proximity of the business to the UK, and the proliferation of single EU market online shopping”.