Morgans research rate Harvey Norman (HVN) an outperform suggesting the retailer looks to be in the early stages of an upgrade cycle. Earnings forecasts for FY14 and FY15 have been revised upwards and are attributed to improved industry structure, leverage to the recovering housing cycle and benefits from internally generated efficiencies. The upgrade comes after the ABS released September retail sales figures well ahead of market expectations. However the trend is not consistent, Wilson Asset Management notes commentary from both Fantastic Holdings (FAN) and Specialty Fashion Group (SFH) suggests trading conditions remain challenging. According to Wilsons this commentary is consistent with a range of companies who have said after an initial pick-up in the post-election period, conditions have cooled to pre-election levels. (VIEW LINK)