Harvey Norman: To Become A World Retailer
November 22nd 2006 11:35
If you, dear reader, like retail would you go on a world foray with Harvey Norman?
The news today, 22 November 2006, is that Gerry Harvey, after announcing yesterday strong four-month figures for Rebel Sport and Harvey Norman, said “we are trying to become a world retailer.”
“That’s our ambition. No one else has done it in Australian history.” “We would like to sit here in 15 to 20 years’ time and say we knocked the buggers off.”
Part of the work would be to win over English retailers Dixon’s and Curry’s. Mr Harvey said he would first expand first through Ireland as a form of cautionary measure.
The company also plans to open three stores more in Malaysia to a total of 15.
This news was published in the online version of The Age, under the title “Norman conquest Harvey world view” and was written by Vanda Carson. Click here to open this page: http://www.theage.com.au/news/business/norman-conquest-harvey-world-view/2006/11/21/1163871404677.html.
Harvey Norman (ASX: HVN) is one of the most successful retail stories in Australia. It holds a total of 174 Australian stores and about 30 international ones, totalling sales of $1.7 billion in figures for the four months to October.
Its revenues grew 27 per cent on an annual compounded basis since June 2001. It’s a fact also that the Australian territory is now saturated. So, will HVN recreate its growth success story by expanding overseas? That seems to be the determination of its Chairman, Gerry Harvey.
The English market may be hard to penetrate and the Asian markets may follow a different formula. But Mr Harvey is creative and astute.
HVN’s earnings have been growing by 16 per cent in the last five years. If they keep going this way, in 2011 they would be 43.65 cents. Having in account average multiples of 27, the share price, now $4.06, would then be $11.78, for an annual return of 24 per cent compounded.
That is, if HVN succeeds in its foreign expansion.
End
The news today, 22 November 2006, is that Gerry Harvey, after announcing yesterday strong four-month figures for Rebel Sport and Harvey Norman, said “we are trying to become a world retailer.”
“That’s our ambition. No one else has done it in Australian history.” “We would like to sit here in 15 to 20 years’ time and say we knocked the buggers off.”
Part of the work would be to win over English retailers Dixon’s and Curry’s. Mr Harvey said he would first expand first through Ireland as a form of cautionary measure.
The company also plans to open three stores more in Malaysia to a total of 15.
This news was published in the online version of The Age, under the title “Norman conquest Harvey world view” and was written by Vanda Carson. Click here to open this page: http://www.theage.com.au/news/business/norman-conquest-harvey-world-view/2006/11/21/1163871404677.html.
Harvey Norman (ASX: HVN) is one of the most successful retail stories in Australia. It holds a total of 174 Australian stores and about 30 international ones, totalling sales of $1.7 billion in figures for the four months to October.
Its revenues grew 27 per cent on an annual compounded basis since June 2001. It’s a fact also that the Australian territory is now saturated. So, will HVN recreate its growth success story by expanding overseas? That seems to be the determination of its Chairman, Gerry Harvey.
The English market may be hard to penetrate and the Asian markets may follow a different formula. But Mr Harvey is creative and astute.
HVN’s earnings have been growing by 16 per cent in the last five years. If they keep going this way, in 2011 they would be 43.65 cents. Having in account average multiples of 27, the share price, now $4.06, would then be $11.78, for an annual return of 24 per cent compounded.
That is, if HVN succeeds in its foreign expansion.
End
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