Interest rates and record housing market bode well for Harvey Norman
Interest rates and record housing market bode well for Harvey Norman. The investment team attended meetings last week with Myer Holdings Limited CEO, Bernie Brookes, and Chairman of Harvey Norman Holdings Limited, Gerry Harvey. In our meeting with Gerry Harvey - it was clear he remains as hungry as ever. Recently celebrating his 75th birthday, the Bathurst-born entrepreneur established Harvey Norman with Ian Norman in 1961, and has steadily grown the business to 230-plus stores across Australia and countries including Ireland, Malaysia and Singapore. Over the last 12 months, the company has recorded a strong recovery overall, largely driven by its furniture and bedding segments, while electronics have started a slow recovery following years of deflation in flat screen TV sales. Given interest rates are expected to remain low for a prolonged period and the NSW housing market continues to set new records, we believe the company is well positioned.