Why are Harvey Norman shares racing 4% to a new record high?

Records are being broken by this retailer on Wednesday.

| More on:
Overjoyed man celebrating success with yes gesture after getting some good news on mobile.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • Harvey Norman's shares surged 4% to a record high after a trading update revealed a strong 9.1% increase in aggregated sales revenue in FY 2026, with significant growth noted in its international stores and Australian franchises.
  • The company benefited from favourable foreign exchange rates, enhancing sales growth, alongside strategic expansions with new store openings in Singapore and Malaysia, increasing its global presence to 121 company-operated stores.
  • The CEO highlighted continued expansion plans in the UK, particularly in the West Midlands, with a new store set to open in 2026, reinforcing Harvey Norman's long-term growth strategy and brand presence in the region.

Harvey Norman Holdings Ltd (ASX: HVN) shares are having a strong session on Wednesday.

At the time of writing, the ASX 200 retail share is up 4% to a record high of $7.71.

Why is this ASX 200 share charging higher?

Investors have been scrambling to buy the retail giant's shares today after responding positively to the release of a trading update ahead of its annual general meeting.

According to the release, Harvey Norman has delivered continued strong aggregated sales revenue in FY 2026 from its wholly-owned company-operated stores in New Zealand, Slovenia, Croatia, Ireland, United Kingdom, majority-owned controlled company-operated stores in Singapore and Malaysia, and independent Harvey Norman, Domayne, and Joyce Mayne branded franchised complexes in Australia

Aggregated sales for the period 1 July 2025 to 20 November, increased by 9.1% over the prior corresponding period. On a comparable store basis, its aggregated sales increased by 8.1% year on year.

In Australia, franchise sales were up 6.5% in total and 6.4% on a comparable store basis.

Foreign exchanged tailwinds have been supportive of the ASX 200 share's sales growth. Management notes that they were positively impacted by a 9% appreciation in the Euro, a 5.5% appreciation in the UK Pound, a 4.6% appreciation in the Singaporean dollar, and a 7.1% appreciation in the Malaysian Ringgit.

Also supporting its growth was an increase to its store network. Management advised that two new company-operated stores were opened during the period. They are located at Punggol Coast Mall in Singapore and The Beat at Kiara Bay in Malaysia. This brings our total number of overseas company-operated stores to 121.

But its international expansion won't stop there. Commenting on its opportunity in the United Kingdom, Harvey Norman's CEO, Katie Page, said:

Our continued expansion in the UK's West Midlands remains a key market to establish and scale. Home to five million people, it's a region with strong economic growth and our strategy is focused on capturing those benefits to drive long-term performance. Just over a year ago, we launched Phase One of this strategy with the opening of our flagship store at Merry Hill Shopping Centre. The store has outperformed expectations for footfall in the first year and continues to set the benchmark for customer experience and design.

Phase Two of the expansion is on schedule, and we can confirm our second West Midlands store at the Gracechurch Shopping Centre in Sutton Coldfield will open in 2026. This new location will strengthen brand awareness across the region and bring Harvey Norman closer to customers north of Birmingham, driving further growth and engagement.

Following today's gain, Harvey Norman shares are now up 60% since this time last year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Consumer Staples & Discretionary Shares

Ship carrying cargo
Technology Shares

Macquarie tips 50% upside for Wisetech Global shares

Wisetech is on a mission to reshape global logistics, and it can actually do that, the team at Macquarie says.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Consumer Staples & Discretionary Shares

Why are Premier Investments shares crashing 12% today?

The Peter Alexander and Smiggle owner's shares are deep in the red on Friday.

Read more »

3 men at bar betting on sports online 16.9
Consumer Staples & Discretionary Shares

Why are BetMakers shares charging higher today?

BetMakers has struck a major deal with CrownBet, which put a rocket under its shares today.

Read more »

Woman thinking in a supermarket.
Consumer Staples & Discretionary Shares

This retail stock could deliver healthy double-digit returns after a steep fall this week

This retailer's shares have taken a tumble, but that’s created a buying opportunity according to the team at Jarden.

Read more »

Looking down on a workstation with three people working on their tech devices.
Consumer Staples & Discretionary Shares

3 top consumer discretionary shares from Bell Potter

Here's three consumer discretionary stocks to watch.

Read more »

A young man looks like he his thinking holding his hand to his chin and gazing off to the side amid a backdrop of hand drawn lightbulbs that are lit up on a chalkboard.
Consumer Staples & Discretionary Shares

Bell Potter just initiated coverage with a buy rating on this consumer discretionary stock

What's behind the buy recommendation for this retailer?

Read more »

Man with cookie dollar signs and a cup of coffee.
Consumer Staples & Discretionary Shares

Macquarie tips 28% upside for Breville shares

Macquarie has a strong opinion on this one...

Read more »

Star Entertainment share price Rising ASX share price represented by casino players throwing chips in the air
Consumer Staples & Discretionary Shares

ASX gaming stocks: Should you try your luck?

We reveal analysts' views on Aristocrat, Light & Wonder, Jumbo Interactive, and Betr Entertainment.

Read more »