The Harvey Norman (ASX: HVN) share price is up more than 4% after releasing FY20 profit news.
What is Harvey Norman?
Harvey Norman 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 update
The company recently gave a sales update to the market and declared a special dividend.
Today, Harvey Norman has released profit news for FY20.
Unaudited preliminary accounts for the period from 1 July 2019 to 31 May 2020 indicate that profit before tax and non-controlling interest, but excluding the AASB16 Leases net impact and net property revaluation adjustments increased 20% compared to last year.
That was quite a mouthful. In other words, Harvey Norman’s normal profit before tax was up 20% for the first 11 months of FY20 compared to the first 11 months of FY19.
The full FY20 result is expected to be released on 28 August 2020.
I’ve been surprised and impressed by how Harvey Norman has performed during this COVID-19 time. You’d think a retailer would suffer during a recession and the shutdowns. Perhaps it’s a better dividend share than some investors gave it credit for. The international growth is also an interesting proposition. The share price has recovered strongly since March 2020, so I’m not sure what a good price to pay for Harvey Norman is now.
Disclosure: At the time of writing, Jaz doesn’t own shares in any of the businesses mentioned.