Highlights

• Harvey Norman increased FY26 system sales by 3.1% to AUD 9.64 billion across its retail network.

• The retailer reported AUD 528.46 million in net profit after tax and higher fully franked annual dividends.

• Its overseas retail segment increased profit, although the UK operation recorded a larger annual loss.

• Harvey Norman recorded a AUD 156.75 million net property Revaluation gain within its reported annual earnings.

Higher sales and profit did not tell the entire FY26 story at Harvey Norman Holdings Limited (ASX:HVN). The retailer reported AUD 9.64 billion in system sales and AUD 528.46 million in net profit after tax, while property revaluations supported statutory Earnings and losses widened in its UK business. The split between Franchise trading, overseas stores and property remained central to the result.

Sales and Dividends Move Higher

For the year ended 30 June 2026, system sales climbed 3.1% to AUD 9.64 billion. Reported profit before tax increased 4.9% to AUD 790.29 million, while net profit after tax rose 2.0% to AUD 528.46 million. Basic earnings were 42.41 cents per share.

The board declared total fully franked dividends of 27.5 cents per share, compared with 26.5 cents a year earlier. The final 13-cent Dividend is scheduled for payment on 12 November 2026. Harvey Norman generates income through Australian franchise operations, company-operated overseas retail and its property portfolio.

Property Adjustments Shape Headline Earnings

Reported annual profit included a net property revaluation gain of AUD 156.75 million. The company also presented Underlying Profit before tax of AUD 654.69 million, up 10.9%, after excluding specified revaluation, lease-accounting and penalty effects.

The property portfolio was valued at approximately AUD 4.80 billion. Property segment profit before tax reached AUD 333.49 million, while profit excluding revaluations rose 5.7% to AUD 176.74 million. The group owned 99 of its 195 franchised retail complexes.

Overseas Growth Contrasts With UK Loss

Australian Franchisee sales grew 2.4% to AUD 6.58 billion, although second-half sales declined 0.2%. Franchising profit before tax was AUD 345.18 million, broadly in line with the previous year. Overseas company-operated retail profit before tax grew 23.4% to AUD 135.72 million.

New Zealand contributed AUD 85.12 million in segment profit, Singapore and Malaysia AUD 44.88 million, and Ireland AUD 30.84 million. The UK recorded a AUD 31.21 million loss, compared with AUD 23.37 million a year earlier. Its second English store opened in April 2026.

Store Pipeline and Balance Sheet

Company-operated retail sales advanced 4.5% to AUD 3.05 billion across 123 stores, with five new stores opened in Asia and the UK during FY26. The FY27 pipeline includes a new Australian franchised complex, four relocations and additional sites planned in Malaysia and Singapore.

Operating cash flow declined 22.6% to AUD 537.22 million. Net Debt to Equity rose to 18.81% from 13.43%, while total Assets reached AUD 8.85 billion. A AUD 35 million Federal Court penalty was also recorded in the FY26 discussion. Future results will reflect retail trading, overseas expansion and property valuations.