The retailer is capitalising on rising consumer interest in artificial intelligence devices to increase store traffic, which has further boosted sales of traditional homewares. Harvey Norman reported a 47% increase in annual net profit to $518 million, driven by demand for tech products, growth in overseas markets and rising property values.
The Australian-based household goods retailer has maintained strong performance across its international markets, including Europe and Asia. Originally a physical destination for furniture and electronics, Harvey Norman has embraced a shift toward tech-focused retail experiences. Shoppers may visit to explore new AI tools but often leave with bedding, appliances or furniture, leading to gains across a wide range of products.
Total revenue rose 5.5% to $9.35 billion in 2025. In Australia, same-store sales grew by 6.1%, while growth was 4.9% in Slovenia and Croatia and 5.9% in Ireland. Early data from fiscal 2026 suggests strong momentum is continuing with July comparative sales up 8.7% and total revenue for the month increasing 9.9%.
Performance was also supported by the company’s $4.53 billion property portfolio, which doubled in value in 2025 and contributed significantly to overall profits. Pre-tax profit for the year reached $753.1 million, a 39% rise, with $154 million stemming from property revaluations. Harvey Norman appears to treat its property assets as a key part of its operating strategy rather than just a support element.
While performance across all 195 Australian stores remains solid, international growth is becoming increasingly important. Stores in Ireland and southeast Asia delivered strong same-store sales, and Harvey Norman entered the UK market in late 2024. New Zealand operations saw a slight decline due to economic pressures, but the UK expansion indicates long-term confidence in overseas markets.
With net assets of $4.84 billion, most of which are in property, and an increase in the final dividend to 14.5 cents per share, Harvey Norman is well-positioned to maintain its mix of technology retail, homewares and strategic property investment. However, its continued success will depend on future shifts in global economic conditions and consumer spending trends.
Sources
- The Australian
- AINvest: Harvey Norman Holdings' FY Pretax Profit Surge and Its Implications for Retail Investors
- Grow Your Business: Harvey Norman Continues Expansion Plans
- Simply Wall St: Harvey Norman Holdings Full Year 2025 Earnings: Beats Expectations
- Retail Gazette: Harvey Norman to open new store and UK head office in West Midlands
