Harvey Norman has cracked $6 billion in global sales despite continued closures of its franchise stores in Australia.
The retail giant recorded a net profit of $268 million for the year ending 30 June, an increase of $56 million, or 26.6 percent.
While the company closed five more stores in Australia, franchise sales increased 3.7 percent to $4.95 billion. Only one new Harvey Norman store was opened, bringing the number of franchise stores to 194.
Harvey Norman cut tactical support to franchises by a further $21.84 million in continued efforts to offset expenses from losses on asset sales and bad debts. Support costs have been cut 20 percent every year for the past two years.
The company continued to tout its “omni-channel strategy”, blending its physical locations with its online storefront to become a “distribution centre”. Harvey Norman said the digital strategy will see improved margins and market share by its franchisees.
Australian sales were up 3.7 percent, while the company’s operations in New Zealand, Slovenia, Croatia, Ireland and Northern Ireland were all up across the board as well.
The results were also boosted by solid performances by Harvey Norman's property segment, with sales increasing $16.7 million, or 7.6 percent, to $236 million. Harvey Norman said the continued strength in the Australian housing market will support franchisees medium-term performance in the following years.
