Ahead of the all important Christmas trading period, household goods retailer Harvey Norman Holdings Ltd (ASX:HVN) has cautioned the market to expect a fall in profit.
Speaking at the company's annual general meeting chairman Gerry Harvey said investors are going to see a pretty sizeable fall in the second half of this year and he is unsure if that trend will continue into the next year.
Mr Harvey said November sales figures are nowhere where he had hoped they would be and that there is a big consumer lack of confidence, fuelled by the interest rate rise from the RBA earlier this month.
The warning wasn't just for Harvey Norman, with Mr Harvey predicting many retailers will have cashflow problems in the next six to twelve months, as they compete with online retailers and aggressive discounting.
Harvey Norman Holdings improved its net profit to $237.98 million in fiscal 2010.
HVN Price at posting:
$3.00 Sentiment: None Disclosure: Held
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