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Michael Gable of Fairmont Equities notes Harvey Norman bounced out of initial selling before stalling, but has now broken up through its recent range.

Increased Australian franchisee sales have generated exceptional profit growth for Harvey Norman in the latter stages of FY20 but will this heightened state endure?

JB Hi-Fi has been in a plum position to benefit from households spending more time at home for both work and play but how will this pan out once government stimulus ends?

Michael Gable of Fairmont Equities notes a number of stocks have recently developed a much more bullish profile, one being Harvey Norman.

JB Hi-Fi has had a stellar couple of months as consumers stock up on goods related to the home but this is likely to fade as the realities of higher unemployment and a softening housing market emerge.

Australian sales remain the critical weak spot for Harvey Norman in the lead up to the festive season as the retailer’s key categories face a tough consumer environment.

Despite a strong approach to category management and continued cost savings, the outlook for JB Hi-Fi is affected by a weaker housing market and ever-rising online sales.

Michael Gable of Fairmont Equities warns a break of $22 for JB Hi-Fi could open up substantial downside.

Harvey Norman’s Australian franchise has returned to positive sales growth since September, yet brokers remain cautious ahead of the all-important Christmas trading period.

Sales at Harvey Norman’s Australian franchises have continued to weaken in the first months of FY19 so the focus is turning to offshore expansion to drive revenue and growth.