Harvey Norman has reported a significant boost in sales for the financial year ending July 2025, largely attributed to growing consumer interest in artificial intelligence (AI) devices. The company’s chair, Gerry Harvey, noted that shoppers are increasingly eager to upgrade their technology, contributing to a full-year profit increase of $165.56 million, or 47 percent, bringing total profits to $518 million.
In morning trading on Friday, shares for Harvey Norman peaked at an all-time high of $7.09 before settling at $6.89. Total group sales rose by $487.91 million, reaching $9.35 billion. Sales from franchisee-run stores accounted for $6.43 billion, with the remainder generated through company-operated outlets.
AI as a Catalyst for Growth
Mr. Harvey expressed surprise at the company’s performance, stating, “At the beginning of last year I thought we’d be battling to make anything like the amount of money we made. I thought we’d make something a lot less than that, but it actually ended up a lot better than I thought.” He emphasized the “AI revolution” as a key driver for customer interest, noting, “We’ve got people coming into our stores all the time, either buying or seeking information, on AI because they’re looking at it and thinking to themselves, ‘I’ve got to keep up to date.’”
The impact of AI is not only limited to electronics; Mr. Harvey indicated that AI advancements are now influencing product ranges in lounge and bedroom furniture as well. The company’s Australian network led the growth, with sales increasing by 6.1 percent to $6.43 billion during the financial year. Sales in other regions showed positive movement as well, with New Zealand growing by 1.6 percent, Slovenia and Croatia up 4.9 percent, and Ireland rising by 5.9 percent.
Future Expansion Plans and Challenges
While Harvey Norman’s entry into the English market is progressing as planned, Mr. Harvey acknowledged the challenges posed by significant establishment costs, particularly following the opening of the Merry Hill flagship store in October. Despite these challenges, he remains optimistic about the potential in the West Midlands region, where plans for a second store are already underway.
As the new financial year unfolds, momentum appears to be sustaining, with total group sales reportedly up 9.9 percent in July compared to the previous year. On another note, Mr. Harvey addressed concerns regarding organized thefts that have affected retailers recently. He stated that there is “no evidence whatsoever that our theft is any different to where it’s been,” adding that high-value items like mobile phones and computers are well secured in stores.
Harvey Norman’s total assets surpassed $8 billion for the first time as of June 30, bolstered by a $4.53 billion freehold property portfolio. The company declared a final dividend of 14.5 cents per share, reflecting its strong financial standing amidst ongoing market dynamics.
