Profits Up 20% At Harvey Norman Despite COVID-19

eletronic department store show Television TV and home appliance with bokeh light blurred background

The COVID-19 lockdowns saw sales at electronics store Harvey Norman rise by nearly 40 per cent, company results have shown.

For FY2020, revenue reached $8.23 billion up 7.6 per cent from the year prior. Additionally, net profit was up nearly 20 per cent at $480.5 million.

It marked a record year for the company.

“Globally, the 2020 financial year was a year of unique challenges. The drought and bushfires last summer, followed by COVID-19, had a significant impact in the 8 countries where we, or our franchisees, trade,” said company chairman Gerry Harvey.

“Pleasingly, customers continued to engage strongly with our brands and importantly, as we are in the lifestyle/home retail space, the customer was appreciative of the shopping experience, spaciousness and easy parking at the physical franchised complexes and stores, whilst embracing the ease of connection to our brands digitally and the important convenience of home delivery and click and collect.

“The results achieved in 2020, are a testament to the strength of our model.”

The increased profitability of Harvey Norman should serve as some comfort for the media and advertising industry.

Earlier this year it was revealed by Nielsen that Harvey Norman had spent $165.4 million on advertising in 2019, making it Australia’s top advertiser.

 




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