Harvey Norman shares jump to record high of $7.69 as investors welcome overseas expansion
Harvey Norman shares jumped 4.1 per cent on Wednesday morning to a record high of $7.69 as investors welcomed its overseas expansion and strong sales growth in Australia.
At its annual shareholding meeting, the company revealed same-store sales in Australia grew 6.4 per cent over the period between July 1 and November 20.
Total sales for the entire group, which has 316 franchised and company-operated stores across Australia, New Zealand, Asia and Europe, rose 9.1 per cent with same-store sales growth of 8.1 per cent over the period.
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Broker Citi described the trading update as “strong” and said the Australian like-for-like sales were a little ahead of forecasts.
“The benefits of lower interest rates and household income growth could boost Harvey Norman’s sales,” Citi said as it stuck to a $7.70-a-share valuation on the business.
AI boosts sales
Chief executive Katie Page said artificial intelligence had been used to improve sales.
“Our 10 year flagship retail expansion has positioned Harvey Norman as Australia’s most successful omni-channel retailing export in home, lifestyle and tech - success that is measured in duration, sustained growth and total physical, international footprint,” she told shareholders at the meeting in Western Sydney.
Overseas sales benefited from a weakener dollar. The company is opening more stores in Britain and Malaysia.
The stock has surged 63 per cent this year, giving the company a valuation of $9.5 billion and adding to the wealth of billionaire co-founder Gerry Harvey.
More to come..
