Retailer Harvey Norman has said that the its earnings in the first quarter fell 20 per cent mainly due to a significant fall in sales revenue as well as store closures in the country.
The company said that its preliminary accounts for the three months till September indicates that profit before tax was recorded at the level of $50.1 million, compared to $62.8 million in the same quarter of the previous year.
The worldwide sales of the company were recorded at $1.33 billion, which is 10 per cent lower compared to the same period of the previous year. The total sales were down 7.8 per cent from the same period in the previous year.
Harvey Norman's total sales in Australia fell 11.5 per cent compared to the same period of the previous year, recording its largest fall for the company. "Technology and entertainment sales continue to be affected by the cautious consumer and continued price deflation," the company said.
The company said that the demand for white goods, cooking, small appliances, furniture and bedding remained high. The retailer has now started restructuring its stores to stock more home goods and less of electrical products.