Retail veteran Gerry Harvey says profit margins remain a concern, despite Harvey Norman reporting Australian sales have picked up in the first four months of the financial year.
The homeware and electronics retailer revealed at its annual general meeting that sales at its Australian franchisees were up 3.2 per cent in the period from July 1 to October 31, compared to the same time in 2023. Same-store sales were up 3.1 per cent
"People are buying, there's no question about that," Mr Harvey told AAP after the meeting on Wednesday.
"There's question is, how much money can a retailer make when the margins are under pressure and the costs are so high."
With Black Friday sales in full swing, Mr Harvey said retailers were "out there spending an absolute fortune" on advertising.
"You could argue that Black Friday is very good for the media and not so good for the retailer," Harvey Norman's executive chairman said.
In its overseas operations, Harvey Norman reported same-store sales in local currencies were down 6.6 per cent in New Zealand, 5.4 per cent in the United Kingdom and 4.4 per cent in Malaysia, while up 6.3 per cent in Slovenia and Croatia, up 3.2 per cent in Ireland and up 0.3 per cent in Singapore.
Harvey Norman avoided a "second strike" at the annual general meeting, after an 81.8 per cent vote in 2023 against its renumeration report on executive pay.
Fewer than one per cent of shareholders rejected the report on Wednesday, Mr Harvey said.
Harvey Norman shares were up 2.6 per cent early on Wednesday afternoon.
