Harvey Norman Holdings Limited (ASX: HVN) has reported its year-to-date sales for its 2019 financial year showing that Australian franchisee sales are falling.
Harvey Norman Holdings is a major retailer that both operates company-run stores and also franchises Harvey Norman stores. There are Harvey Normans in Australia, New Zealand, Slovenia, Croatia, Ireland, Northern Ireland, Singapore and Malaysia. Gerry Harvey and Ian Norman opened the first store over 50 years ago in 1961.
Harvey Norman’s sales update
Harvey Norman’s aggregated sales, which doesn’t include Australian franchisee sales, grew by 2.7% to $2.88 billion in the period from 1 July to 23 November.
Some highlights included Ireland sales increasing by 29.8%, Malaysian sales growing by 65.4% and Slovenian & Croatian sales growing by 15.6%. These figures are based on Australian dollars.
Harvey Norman outlined that it benefited from a 6.2% appreciation in the Euro, a 7% in the UK pound, a 7% increase in the Singapore dollar and an 11.1% increase of the Malaysian Ringgit.
However, Australian franchisee sales fell 1.3% with comparable sales dropping by 0.2%.
So far in FY19, one Joyce Mayne complex was opened in Australia, one company-operated store was opened in Malaysia and one franchised Harvey Norman complex was closed in Australia.
The Harvey Norman share price has fallen by 22% over the past year according to Google Finance.
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