Retailer Harvey Norman Holdings Limited (ASX: HVN) unleashed company’s sales results with total sales amounting to $2.88 billion from the start of Fiscal 2019 to 23 November 2018.
In a market announcement dated 27 November 2018, Harvey Norman told that aggregated amount of sales for year to date has surged 2.7% to $2.88 billion when compared with previous corresponding period. The improvement is sales largely reflects the growth in Harvey’s majority-owned controlled company-operated stores across Malaysia followed by company-owned stores’ growth in Ireland.
The company told that aggregate sales has also been affected by the positive change in foreign exchange. The change includes a 7.0% rise in the UK Pound, increase of 0.2% in New Zealand dollar $, an appreciation of 6.2% in the Euro €, a 11.1% leap in the Malaysian Ringgit, and an appreciation of 7.0% in the Singaporean dollar $ for the reporting period, compared to previous corresponding period.
But on the adverse side, the retailer has witnessed a negative change of 1.3% in Australian franchisees total sales. Commenting on this decline, the company informed that the franchisees’ sales in Australia has not been made by Harvey Norman or its controlled entities.
Harvey Norman operates through three different models. First via wholly-owned company-operated stores, second through majority-owned controlled company-operated stores and third via independent franchised complexes. In Slovenia, Croatia, Northern Ireland, New Zealand, Harvey runs company-owned stores and in Singapore and Malaysia it holds majority stakes in its stores. Whereas, its franchise model includes the franchise distribution across Australia under its three brands Harvey Norman ®, Domayne ® and Joyce Mayne®.
Malaysia recorded the highest sales for the period from 1 July 2018 to 23 November 2018 mainly underpinned by the opening of one more company-operated stores during the reporting period. Moreover, the company announced the opening of one Joyce Mayne ® franchised complex in Australia and closure of one Harvey Norman ® franchised complex in Australia during Fiscal 2019.
On the comparable sales front, the company has reported an increase of 3% for year to date, compared with previous corresponding period. The change includes negative 0.2% in Australian Franchisees, and positive change of 47.3%, 28.1%, 15.6%, 10.5%, 5.8%, 4.7% in Malaysia, Ireland, Slovenia & Croatia, Singapore, Northern Ireland and New Zealand, respectively.
After reporting decent sales growth for year to date, Harvey Norman Holdings Limited traded at higher levels with share price surging 2.99% to last trade at $3.100 on 27 November 2018. Moreover, price to earnings ratio settled at 8.930 x with market capitalization of $3.55 billion. But over the past one year, the stock has witnessed a negative performance change of 22.17%.
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