Harvey Norman has announced a profit decline of 24.8 per cent for the nine months to 31 March 2012 compared to the previous corresponding period.
As a result, profit declined to $204.8million compared to $272.3million, down $67.5million.
The company also reported global sale figures dropped 6.7 per cent to $4.39 billion, while like-for-like sales decreased 6.6 per cent.
The dramatic decline has been attributed to the high Australian dollar and the price competitive market.
Chris Mentis, Harvey Norman chief financial officer, said its categories continue to be affected by price.
“AV/IT franchisee sales continue to be challenged. Technology categories continue to be affected by a decline in average selling price. This is attributable to the high Australian dollar and intense competitor activity. This competitor activity has increased due in part to the collapse of WOW Sight and Sound and the recent activity around the anticipated closure of part of the Dick Smith Electronics business,” he said.
“Technology categories, including flat panel TV continue to experience deflationary pressure. The seasonal category underperformed due to the well documented weather conditions.
“Appliances and white-goods continued to perform solidly with growth in the quarter. Harvey Norman’s strategic position on these categories resulted in significant growth above the market for the period.”
The company also highlighted that while the housing market has softened its furniture and bedding franchise sales still remain steady.