Harvey Norman’s chair, Gerry Harvey, announced that the increasing consumer interest in artificial intelligence (AI) devices has significantly boosted the company’s sales for the 2025 financial year. The retailer recorded a substantial profit increase, with full-year profits rising by $165.56 million, or 47 percent, to reach $518 million. This growth was reflected in the company’s total sales, which climbed to $9.35 billion, marking an increase of $487.91 million.
The company, known for its homewares, electronics, and white goods, operates 195 franchisee-run stores in Australia and 121 company-operated stores across seven international markets. Following the announcement, shares reached an all-time high of $7.09 during morning trading, before closing at $6.89 on Friday.
AI Revolution Fuels Consumer Interest
Mr. Harvey expressed his surprise at the robust performance, stating, “At the beginning of last year, I thought we’d be battling to make anything like the amount of money we made.” He attributed much of the growth to the ongoing “AI revolution,” which he described as a key driver in attracting customers. “We’ve got people coming into our stores all the time, either buying or seeking information on AI,” he said.
This trend indicates a shift in consumer behavior, with many shoppers eager to stay current with technological advancements. Mr. Harvey noted that demand for AI products is now extending beyond electronics into areas like lounge and bedroom furniture.
The Australian market led the group’s performance, with sales increasing by 6.1 percent to $6.43 billion in 2025. Sales growth was also observed in other regions: New Zealand saw a 1.6 percent increase, Slovenia and Croatia 4.9 percent, and Ireland 5.9 percent.
Expansion Plans and Challenges
Despite the positive results, Mr. Harvey acknowledged challenges associated with expanding into the English market, particularly the significant establishment costs incurred when opening the Merry Hill flagship store last October. He remains optimistic about the strategic potential of the West Midlands, where a second store is planned for this year.
The momentum appears to be continuing into the new financial year, with total group sales growing by 9.9 percent in July compared to the previous year. This indicates a strong start for the company as it seeks to capitalize on the ongoing demand for AI-related products.
As retailers face challenges from rising organized theft, Mr. Harvey stated that Harvey Norman has not experienced any significant increases in theft incidents. He noted that while smaller items like mobile phones and computers can be stolen, the company takes precautions by locking these items up and maintaining surveillance.
Harvey Norman’s total assets surpassed $8 billion for the first time as of June 30, largely due to its $4.53 billion freehold property portfolio. The company declared a final dividend of 14.5 cents per share, further reflecting its strong financial position.
