Harvey Norman gets first strike on pay
Make us a preferred source
Make us a preferred source on Google
More news: Shareholders in Harvey Norman have sent a clear message to management by launching a first strike against pay, with 81.8% of votes rejecting the remuneration report.
A second strike against pay, requiring a vote of at least 25% in opposition, at next year's AGM could lead to a spill motion for the board.
Harvey Norman shares were trading 2.8% higher despite the vote and weaker sales data, tracking higher than a 1.4% lift in ASX consumer discretionary stocks as of 1:10pm AEDT.
Harvey Norman sales drop despite exchange rate gains
The news: Harvey Norman sales revenue dropped 7.8% in the first five months of its financial year, despite helpful foreign currency movements.
The furniture, whitegoods and electronics retail group has stores across the world and received some benefit from the appreciation of the Euro, British pound and other currencies.
The numbers: Sales revenue from Australian franchisees had the greatest decline, dropping 11.6% for 1 July to 25 November, compared to the same period last year. The best performing overseas operation was Ireland, where sales revenue improved by 8.6%. Harvey Norman did not provide actual sales figures.
The context: In addition to Ireland, the company trades in Croatia, Malaysia, New Zealand, Northern Ireland, Singapore and Slovenia. The sales data includes the Harvey Norman-owned Domayne and Joyce Mayne businesses in Australia. Harvey Norman is holding its annual general meeting on Wednesday, where management may outline the reasons for the sales slump.
Its weaker results come as interest rate increases and inflation pressures have impacted consumer confidence.
The source: ASX announcement
