Retail in Asia

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Harvey Norman leaves door open for further capital returns to shareholders

After posting double digit profit growth for a second year in a row, veteran retailer Gerry Harvey has left the door open for further capital return to shareholders via handing back some of the retailer’s AUD585 million (USD417.2m) in franking credits.

Harvey Norman, the nation’s largest white goods and homewares retailer, gave shareholders a final payout of 11¢ a share on Friday, well ahead of expectations of 9¢, after lifting net profit by 26.6 percent to AUD268.1 million. Mr Harvey said there may be more to come.

The retailer said 2015 had been "a year of contrasts", where the strong housing market in Australia, which fuelled purchasing of appliances and furniture, partially compensated for subdued consumer confidence. Market share gains in some product categories countered sluggish overall demand.