Retailer Harvey Norman is forecasting sales growth in its homemaker products as it lifted half year net profit 27.4 per cent to $141.98 million.
A strong housing market in Australia, record low interest rates and major infrastructure investment in NSW and stable consumer sentiment were pointing to positive trends, said chairman Gerry Harvey.
The fully franked interim dividend was increased to nine cents a share from six cents.
“In Australia, our stores are benefiting from improved consumer confidence on the back of strong equity markets and strong growth in the housing market,” Harvey said.
Revenue was $839.3 million, up from $777 million.
Harvey said the strength of the company’s online strategy and the benefits of the integrated Harvey Norman system helped the result.
“Our business has shown positive momentum for some time now, and it’s great to see improved segment performances in the half year,” he said.
The fully franked interim dividend increased to nine cents a share from six cents.
Harvey Norman shares rose five cents, or 1.1 per cent, top $4.40 at 1047 AEDT.
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In other results announced today, Treasury Wine Estates’ first half net profit has fallen 60 per cent to $42.6 million but sales and underlying earnings were up for the period.
The previous year’s result was inflated by an $80.5 million tax benefit and chief executive Michael Clarke said this year begun well, although the re-setting of the business would take some time yet.
The unfranked dividend was reduced by one cent to six cents a share.
