With Harvey Norman [ASX:HVN]’s shares sinking by 1.10% at time of writing, share market commenters urged the company to focus on selling as much as possible.
Since reporting half-year earnings on 28 February, the stock sank to drastic levels with shares being valued at just $4.01 a share.
Founder Gerry Harvey attempted to reassure investors by saying the market had got it wrong in regard to its consistent share drop.
Ever since reporting day, shares have not managed to grow at all. Many factors are going against the brand. The threat of global competition has not been properly addressed.
Founded in 1982, Harvey Norman sells electrical goods, furniture, computers and many more accessories.
How Harvey Norman are planning to compensate for their shortcomings
Harvey Norman have recently claimed millions of dollars as a creditor over its failed dairy investment.
Coomboona, Harvey Norman’s dairy venture, borrowed $40 million back in June last year, which Harvey Norman was eventually responsible for paying back.
Harvey Norman believes much of their decrease stems from their tough competitors, JB HI FI and The Good Guys.
Higher staff wages were also put in place to align with additional training days.
Since the dairy venture collapsed, Harvey Norman have extended their focus in their retail experience.
Sharecafe.com reported that Gerry Harvey stated, ‘This is a really solid result when you consider the previous half-year period saw the strongest results on record and it shows our franchisees have kept up that momentum to deliver an unprecedented result.’
Gerry Harvey strongly believes that their franchises have managed to keep up with their momentum and will continue to push forward to deliver a more consistent result.
Editor, Markets & Money
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