Australians are splurging at Harvey Norman as their houses and share portfolios increase in value.
The retailer is forecasting sales growth in its homemaker products this year thanks to improved consumer confidence following a 27.4 per cent boost to half year net profit.
The robust result prompted the company to lift its interim dividend to nine cents and issue a special dividend of 14 cents per share.
A strong housing market in Australia, record low interest rates, major infrastructure investment in NSW and stable consumer sentiment were pointing to positive trends, chairman Gerry Harvey said.
"In Australia, our stores are benefiting from improved consumer confidence on the back of strong equity markets and strong growth in the housing market," Mr Harvey said.
"We expect consumer sentiment to remain stable and positive trends in our business to continue."
The company said there had been consistent strength in NSW where Sydney house prices have taken off and more than a third of the company's stores are located.
"Growth this half was weighted towards homemaker categories," Mr Harvey said.
Half year net profit lifted 27.4 per cent to $141.98 million, up from $111.42 million.
Sales revenue increased eight per cent to $839.3 million.
Harvey Norman's property assets also increased in value to $2.31 billion from $2.27 billion.
Mr Harvey said the strength of the company's online strategy and the benefits of the integrated Harvey Norman system had helped the profit result.
"Our business has shown positive momentum for some time now, and it's great to see improved segment performances in the half year," he said.
Global sales for the half year increased to $3.09 billion, which was 3.2 per cent higher than the previous corresponding period.
Harvey Norman has 195 franchises across Australia and 86 company-operated stores overseas.
Shares in the company rose 5.5 cents, or 1.3 per cent, to $4.40 at 1610 AEDT.
SHOPPERS FLOCK TO HARVEY NORMAN
* Half year net profit of $141.98m, up 27.4 pct from $111.42m
* Sales revenue of $839.3m, up 8 pct from $776.96m
* Interim dividend of nine cents per share, up from six cents.
*Special dividend of 14 cents.
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