Harvey Norman incurs €27m loss

Retailer Harvey Norman said today it remained committed to the Irish market, despite incurring a trading loss of more than €27 million in its business here.

In a trading statement yesterday, the company said it lost €27.65 million in the year, a 13.5 per cent improvement on the previous year. The electronics and furniture retailer has been hit hard by the economic downturn here and the effect on housing prices, disposable incomes and consumer confidence.

“It has been a very challenging year for us, but we’re holding our own in terms of market share, sales, and unit volumes. We had a very strong year for consumer electronics, with double digit growth in our technology business. That was somewhat encouraging given the overall market,” chief executive of the Irish operation Blaine Callard said.

The company said sales in its Republic of Ireland stores rose 1.4 per cent to €127.2 million for the year ended June 30th. Sales in its two Northern Ireland stores rose 18.7 per cent to £10.08 million as the stores had their first full year of trading.

The company is also seeking rent reductions from landlords in a bid to cut costs, and is also looking to control other fixed costs where possible.

The company said it had enough cash reserves to support its Irish stores. "It seems that the Irish economy has bottomed out and we are seeing the first green shoots of recovery. If that recovery is sustained, we will be able to invest in more stores and create more jobs," executive chairman Gerry Harvey said.

Despite posting a loss in its Irish operation, the Harvey Norman parent group announced a full year increase in profit of 8 per cent to $231.41 million Australian dollars.