Retail giant happy with figures

Sales last month met expectations. Photo / Hawkes Bay Today

Electronics and homewares retailer Harvey Norman Holdings has reaffirmed its guidance for a big lift in first half profit after reporting a 4 per cent increase in first half sales.

The company yesterday said sales for the six months to December 31 were A$3.27 billion compared with $3.15 billion in the previous corresponding period. Like-for-like sales at its Australian, New Zealand, Slovenia and Ireland businesses increased by 2.5 per cent.

The company said sales in January had met expectations but did not comment on trade in the December period.

Last year chairman and co-founder Gerry Harvey had been bullish about the Christmas period, saying "this is going to be the biggest Christmas we have ever had".

But the retailer said that it remained "cautiously optimistic" about the next five months despite the positive effect of the Government's cash stimulus payments injected into the economy last year.

The company reiterated its pre-tax first half profit guidance of a 40 per cent lift. Harvey Norman's 2008-09 first half net profit dropped 56.8 per cent to $99.33 million, reflecting the impact of the global economic downturn. Half year profit results are due out February 26.

On Thursday, Myer reported modest interim sales after a disappointing Christmas. Myer's results coincided with official December retail trade figures. Total sales for the sector fell by 0.7 per cent in the month.

- AAP