Harvey Norman (HVN) has currency movements to thank (finally) for a 4% lift in sales for the nine months to the end of March.
The electrical and homewares retailer said it had sales of $4.33 billion for the nine months, while same store (like for like as Harvey Norman calls them) sales rose 5.2%.
That was thanks to gains in the value of the euro, UK pound and New Zealand dollar.
In the past, weakness in those currencies against the Aussie dollar, plus weak trading conditions in those markets, have hurt the company.
But the trading conditions in all three areas have improved, especially in NZ and Ireland.
Sales from the company’s Australian division were up 1.5% compared to the same period a year ago, though the closure of five Harvey Norman stores and one Joyce Mayne outlet trimmed the rise.
But that was offset by a 16.5% increase in sales from the company’s New Zealand stores, a 16.3% increase in sales from Croatia and Slovenia, and a 23.2% rise in sales in Ireland.
However, sales from Northern Ireland were down 6.3%.
In constant currency terms and accounting for the store closures, the results were a bit different.
Australian sales were up 3.4%, while New Zealand sales were down 1% and Slovenia and Croatia fell 1.9%.
On the same basis, the company’s Irish stores recorded sales growth of 4.1% while Northern Ireland sales were up 20.3%.
For the third quarter alone, the company’s Australian stores lifted topline sales 1.8%, and same store sales by a very solid 3.6% as shoppers returned to the company’s earnings heartland.
That sustains the growth seen in the previous two quarters for the company.
The shares were up 0.6% at $3.28.
HVN 1Y – Harvey Norman helped by stronger EU and NZD
