Aggressive discounting on electrical goods is being blamed for sending struggling retailer Harvey Norman's profits tumbling.
The retailer on Thursday said its pre-tax profit for the first nine months of the financial year was down 25 per cent as sales continued to fall in the three months March.
Profit before tax and minority interests was $204.8 million, down from $272.3 million in the previous corresponding period.
Chief financial officer Chris Mentis said the results clearly showed the impact of the aggressive competition in the audio/video and information sector.
"In addition, the strength of the Australian dollar and continued price deflation has eroded average selling prices, and ultimately, retail gross profit margin," he said in a statement.
Mr Mentis said Australian sales were hit by falling prices for technology products, particularly flat-screen TVs, due to the high Australian dollar and tough competition.
That competition had increased since the collapse of Queensland's WOW Sight and Sound and the scaling back of the Dick Smith Electronics business.
Australian like-for-like sales in the three months to March were down 2.8 per cent, and 6.9 per cent lower for the nine month period.
Mr Mentis said the disappointing sales trend had continued into April.
Global like-for-like sales in the three months to March fell by 3.8 per cent, taking like-for-like sales in the nine months to March 6.6 per cent lower.
Harvey Norman shares closed three cents lower at $2.04.
Keep reading - next article