Advanced Search

Share Coverage



Category: Business, Economics and Finance / Company News / Electronics / Retail

Harvey Norman profit jumps 30pc, boss says Dick Smith was 'buggered'

Friday, 26 Feb 2016 11:56:48 | Thuy Ong

Harvey Norman has fared well due to its homewares business, analysts say. (AAP: Joel Carrett)

A day after electronics retailer Dick Smith announced the closure of all its stores across Australia and New Zealand, arch rival Harvey Norman has posted a 30.7 per cent profit jump.

For the six months to December 31, Harvey Norman lifted net profits to $185.5 million, supported by stronger sales in Asia, New Zealand, Ireland and Northern Ireland.

Sales were supported by a strong Christmas period, while a robust housing market boosted the company's homeware divisions.

That's in direct contrast to Dick Smith, which suffered after a pre-Christmas firesale failed to raise much-needed cash.

"I honestly couldn't see a way that Dick Smith could be turned around, in my thinking — impossible," Gerry Harvey, the executive chairman of Harvey Norman, told ABC News.

"Basically the business was buggered, and it was dressed up as if it wasn't. I certainly would not have bid for Dick Smith."

Harvey Norman and JB Hi-Fi have seen profits supported by exposure to home retail including kitchen appliances and white goods.

Analysts said, in contrast to Dick Smith, both companies had very set systems, policies and plans.

"Dick Smith's plan of buying a huge amount of inventory, a lot of own-branded inventory as well, was a big gamble and it just did not pay off," IG market analyst Angus Nicholson said.

"On the face of it, you've basically got a lot of cheaply made Chinese versions of stuff with Dick Smith's own brand on it, and I just don't think the market research was there or the demand for it."

AustraliaPlus


 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend