HARVEY NORMAN has buoyed the sense of festive cheer for the furniture retail industry by forecasting a 40 per cent increase in its latest half year pre-tax profits, compared with last year's lacklustre Christmas trading period.

The company's updated earnings guidance, delivered last week, followed bullish comments by chairman Gerry Harvey on the Christmas retail sales outlook. Fairfax newspapers reported Harvey as tipping that sales for the year were going to be ''an absolute record''.

''This is going to be the biggest Christmas we have ever had; we are going to break all records. I am absolutely flabbergasted sales are as good as they are.''

Harvey attributed the outlook to the return of consumer confidence. Harvey Norman's franchised Australian stores achieved sales of $1.93 billion from July until November 22, a 7.7 per cent increase on the previous corresponding period. Like-for-like sales in the same period were 5.9 per cent higher.

The retailer, which has operations in Australia, New Zealand, Slovenia, Ireland and South-East Asia, has previously reported that sales for the three months to September 30 rose 4.3 per cent to $1.5 billion.

Harvey's statement of pre-Christmas confidence triggered a sector-wide surge in share prices on November 22, with Harvey Norman stock jumping 22c, or 5.1 per cent, to $4.46.

 

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