Blow for Gerry Harvey's retail empire as Harvey Norman sales slide and profit takes a tumble Harvey Norman chairman Gerry Harvey. Retail giant Harvey Norman has suffered another year of falling sales to report a 18 per cent slump in full-year profit. The company made a $144.5 million net profit for the year to June, down from $176.3 million a year ago, as property writedowns and a fall in both franchisee and company-owned store sales once again hit its bottom line. The final dividend to shareholders, however, has been maintained at 4.5c a share, taking the full-year payout to 9c, the same as last year. Despite the decline in sales and profit, Harvey Norman chairman Gerry Harvey said lower interest rates and an improving housing market were starting to flow through to higher retail sales for the electronics and electrical retailer. "With interest rates at historical lows, Australia is seeing housing clearance rates improve and the homemaker categories Harvey Norman franchisees are operating in are benefiting from the more positive market and we hope to see this continue into Christmas," Mr Harvey said. Commercial property writedowns, wiped $41 million from the latest result, however, excluding these devaluations the company's net profit would have been $183 million, down just 3.3 per cent on last year. Since June 30 sales have continued to pick up, Mr Harvey said, with July turnover up 5.3 per cent compared with a year ago. Harvey Norman shares were up 1.7 per cent in early trading this afternoon, at $2.93.