The Harvey Norman Holdings Ltd (ASX: HVN) share price is bucking the wider selling trend today.
In late morning trade on Friday, the S&P/ASX 200 Index (ASX: XJO) is down 0.7%.
But shares in the ASX 200 electronics and home furnishings retail stock are heading the other way.
The Harvey Norman share price closed yesterday at $5.09. At the time of writing, shares are changing hands for $5.34 apiece, up 4.9%.
This strong outperformance follows the release of Harvey Norman's half-year results for the six months ending 31 December (H1 FY 2025).
Here's what's grabbing investor interest.
Harvey Norman share price lifts on profit growth
- Revenue of $2.29 billion, up 6.6% year on year
- Reported profit before tax (PBT) of $400 million, up 41.2% from H1 FY 2024
- Underlying PBT of $311 million, up 2.2%
- Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $581 million, up 22.9% year on year
- Fully franked interim dividend of 12 cents per share, up 20% from last year's interim dividend
What else happened during the half?
In other core financial metrics that could impact the Harvey Norman share price, the retailer reported a 4.7% year on year increase in its net assets to $4.72 billion. Net assets have been growing at a five-year compound annual growth rate (CAGR) of 7.5%.
Harvey Norman also noted that it surpassed the $8 billion milestone for the first time, with total assets reaching $8.25 billion as at 31 December. The company said that 66% of that asset base is comprised of "quality, tangible assets, including an appreciating freehold property portfolio valued at $4.39 billion".
On the negative side of the ledger, operating cash flows declined by 9.9% from H1 FY 2024 to $448 million as the cash conversion rate fell from 135.0% to 118.8%. The company said this was mainly due to higher payments to its suppliers and employees from new store openings.
Passive income investors looking to bank the boosted Harvey Norman dividend will need to own shares at market close on 1 April. The stock trades ex-dividend on 2 April. You can then expect the payout on 1 May.
Adding in the 12 cents per share final dividend paid on 13 November sees Harvey Norman shares trade on a fully franked dividend yield (partly trailing, partly pending) of 4.5%.
What did management say?
Commenting on the results helping to lift the Harvey Norman share price today, chairman Gerry Harvey said the company delivered "a solid result" for the half year.
Addressing the balance sheet, Harvey said:
Our net debt to equity ratio remains low and conservative at 12.01%, down from 14.49% as at 30 June 2024. Our strong balance sheet, low gearing ratio and substantial cash reserves provides the flexibility and capacity to seize the opportunities as they arise, and secure additional liquidity when needed.
What's next for the Harvey Norman share price?
Looking at what could impact the Harvey Norman share price in the months ahead, Harvey said, "We have made significant strides in enhancing our digital, online, and in-store experiences, alongside the strategic expansion of our global store network and targeted investments in key segments."
He added:
The continuing innovation and mainstream adoption of Next Gen-AI PCs and devices are expected to drive further sales growth in the Home Appliances, Television, Audio, Mobile & Computer Technology categories through FY 2025 and beyond.
With today's intraday lift factored in, the Harvey Norman share price is up 12% in a year, not including dividends.
