Retailer Harvey Norman had a very good Christmas with headline and same store sales both up noticeably in the December quarter from the three months to September 30.
HVN directors said headline sales grew 13.1% in the December quarter (compared to the same quarter of 2006) against 11.6% in the September quarter, while same store sales rose 7.9% (compared to the December quarter of 2006) against the 5.7% rise recorded in the September quarter.
That left overall first half sales up 12.4% and past the $3 billion mark for the first time at $3.04 billion. Same store sales over the half grew 6.9% compared to the December half of 2006.
Sales for the December quarter (franchise stores, commercial divisions and other sales outlets in Australia, New Zealand, Slovenia and Ireland) totalled $1.65 billion, the largest ever recorded for a quarter.
The like-for-like sales in the second quarter ended December 31, 2007 were 7.9% higher over the previous corresponding period
But the market ignored the recovery in sales growth in the important Christmas quarter and marked down HVN shares by 52c to $5.36.
Directors made no comment, as they did in the September quarter figures when they upgraded the earnings guidance. Referring to reports from some analysts, directors said at the time:
"The company understands that the published commentary by analysts who regularly publish commentary about the prospects of the company is that, in the respective opinions of those analysts, the net profit after tax ("NPAT") of the company, excluding net property revaluation increment, for the twelve months ending 30 June 2008 will increase within a range of 12% to 28% over the NPAT, for the twelve months ended 30 June 2007. Directors of the company are not prepared to speculate on NPAT for the year ending 30 June 2008.
"The net profit from continuing operations attributable to members, after tax and minority interests, but excluding significant one off items and net property revaluation increment ("Net Profit from Continuing Operations") for the six months ended 31 December 2006 was $132.87 million.
"The directors of the company expect the Net Profit from Continuing Operations for the six months ending 31 December 2007 will increase within a range of 25% to 35% over the Net Profit from Continuing Operations for the six months ended 31 December 2006."
The market took the absence of any further comment in yesterday's statement to confirm that earnings for the half would be up substantially.
Meanwhile Australia's leading 'carbs' retailer, Retail Food Group (RFG) yesterday issued its second profit update in a week.
In a press release from a public relations agency, RFG said:
"Retail Food Group Limited (RFG) announced that, based on unaudited management accounts, the Company's NPAT for the six months ending 31 December 2007 would significantly exceed the NPAT result (of $3.9million) achieved for the FY2007 corresponding period.
"By way of further update the Company now advises that based on its unaudited management accounts, RFG's NPAT for the six months ending 31 December 2007 is likely to be within the range of $7.4million to $7.8million.
"As previously detailed in the Company's 17 January 2008 Announcement, RFG FY2008 first half results will be provided to the market in late February 2008 together with further commentary."
The market ignore this bit of spin as well and sold the shares down 23c or more than 14% to $1.32.
