Strong FY26 Profit Growth
Harvey Norman Reports Rising FY26 Profit and Expands Its UK Retail Footprint
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Key Points
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Harvey Norman opened its second UK store at Gracechurch in London in April 2026, marking a notable step in its UK expansion strategy.
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Excluding the UK expansion, established international operations across New Zealand, Asia and Europe generated 166.93 million in PBT, up 25.2%, illustrating a strong offset to Australian exposure.
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Harvey Norman disclosed a total pecuniary penalty of 35.0 million related to ASIC proceedings, with 18.80 million recognised in FY26 and 16.20 million recognised in prior years.
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The company declared a final fully franked dividend of 13.0 cents per share for FY26, contributing to a total fully franked dividend of 27.5 cents per share for the year.
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Harvey Norman reported consolidated revenue of 4.68 billion for FY26, comprising company-operated sales, franchise revenue, and other income, underscoring the breadth of its diversified model.
Harvey Norman reported FY26 profit before tax of $790.29 million, up 4.9%, with underlying profit climbing 10.9% to $654.69 million as system sales reached $9.64 billion StockWireX. The Australian retailer is pushing hard into the UK market, opening its second London store at Gracechurch in April 2026, while maintaining robust returns to shareholders with a fully franked dividend of 27.5 cents per share Motley Fool Australia.
International Push Drives Profit Growth
Harvey Norman's international business is firing on all cylinders. Overseas company-operated retail profit jumped 23.4% to $135.72 million TipRanks, while established operations in New Zealand, Asia, and Europe delivered $166.93 million in profit before tax, up 25.2% StockWireX. This growth offsets slower Australian performance and positions the company for continued expansion beyond its home market.
UK Expansion Strategy Takes Shape
The Gracechurch store opening marks a turning point for Harvey Norman's UK ambitions TipRanks. The second London location represents a major milestone in the company's strategy to build a meaningful footprint across Britain. Management is using a mix of company stores, franchise revenue, and owned properties to reduce reliance on Australia and fund further expansion TipRanks.
Strong Balance Sheet Funds Growth
Total assets grew to approximately $8.85 billion, while operating cash flow held steady around $537 million TipRanks. This solid financial footing lets Harvey Norman invest in new stores and return cash to shareholders. The company declared a final fully franked dividend of 13.0 cents per share, bringing the full-year payout to 27.5 cents Motley Fool Australia.
ASIC Penalty Clouds Otherwise Strong Results
A $18.80 million pecuniary penalty related to ASIC proceedings was recognized in FY26, part of a total $35.0 million settlement TipRanks. The hit reduced net profit figures but management notes the underlying earnings growth of 10.9% shows underlying business momentum remains solid despite the legal setback StockWireX.
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