The company reported a 9.1% rise in total sales from July to November, driven by strong results in the UK and Europe. The performance has spotlighted the difficulties faced by online-only retailers such as Temple & Webster, which failed to meet market expectations and saw its share price plunge.
Harvey Norman is currently ahead of many rivals due to its international store strategy and its appeal to consumers seeking smart devices and high-end furniture. Its outlets across Australia, New Zealand, Europe and Asia have proven to be significant advantages, especially in the lead-up to the busy holiday season. Meanwhile, online-focused competitors are finding it hard to meet high growth targets, with analysts citing challenges in execution and signs of consumer fatigue.
Temple & Webster reported an 18% rise in sales during the same period, but investors had been counting on 23% growth. As a result, its share price dropped by 32.3%. In contrast, Harvey Norman's UK sales grew 22.2% and smaller European markets such as Slovenia and Croatia delivered a 25.3% increase. Australian franchisees also recorded a 6.5% rise in sales, suggesting stable local demand.
These results reflect Harvey Norman's advantage through its store network and curated product range, which includes popular items such as AI-driven devices and premium electronics. Temple & Webster remains focused on its $1 billion medium-term revenue goal, although internal changes within its marketing team and slower short-term growth have raised doubts about its immediate prospects.
