“Whatever we’re doing to public companies now is making it impossible for them to co-operate.”

Harvey Norman recorded a 4 per cent slide in revenue to $4.1 billion and a 35 per cent drop in net profit to $352.5 million as Australians pulled back on their spending and sought to trade down and find cheaper alternatives. Business costs, including wages and power, are also weighing on profits.

The retailer predominantly caters to the more premium market. Harvey said it had sold less product but that its market share had increased in the higher end of the market.

“We would lose some market share to all of those other retailers out there, online or not online, that are selling in the middle to [lower] market area because they don’t sell in the up-market area,” Harvey said.

Meanwhile, stores based in the country are performing well, which Harvey said was because of strength in the agriculture sector and a boost from the shift to remote work that has made the country a more appealing place to live.

The company will pay a fully franked dividend of 12¢ a share to be paid on November 13. Investors appeared unimpressed by the company’s results, sending Harvey Norman’s share price 6.4 per cent lower in afternoon trading.

“Overall it looks like a nice clean result from Harvey Norman, with [second-half] trends improving, cash flow good and no surprises for us. We had seen some risk into this result, so it’s a good outcome,” wrote Jarden analysts in a note.

The 87-year-old Harvey believes sales will pick up in the current financial year, supported by a new wave of artificial intelligence-powered products including fridges and washing machines, with July notching a 3.5 per cent rise on 2024.

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