Harvey NormanÍs total sales across Australia, New Zealand, Slovenia and Ireland totalled $6.03 billion for the year ending 30 June 2009, an increase of 3.8 percent on the previous yearÍs figures. In a comparison of like for like sales, this financial year saw a growth of 1.4 percent.

But Chris Mentis, chief financial officer at Harvey Norman, cautioned in his announcement, ñGiven the current macroeconomic conditions, retail margins continue to be under pressure.î

According to Fat Prophets, an independent stock market analyst, this means that the company has sought to maintain market share at the expense of profit margin.

ñBy extension, we expect to hear that franchisee margins have declined when the company announces it full year result in late August. Members will likely become familiar with the term ñtactical supportî which refers to the assistance doled out to struggling franchisees that ultimately leaves less in the kitty for shareholders,î its report suggested.