Harvey Norman profits have slipped 57% to $99 million and that the outlook does not look good going forward. In comparison JB Hi Fi reported a 40% incrrease in profits and a 26% increase in sales.

Chairman Gerry Harvey said that the first-half had been market by unprecedented market turbulence and that trading conditions in the second-half remained challenging however the Group was operating well he said and its core operations remained strong and resilient.

"We are confident of sustainable growth across all of our brands and the property portfolio through sound strategic and financial management during the current period and in preparation for improved economic conditions," he said.

"Our integrated retail, franchise and property system and the resilient strength of the franchising operations segment has the consolidated entity very well placed for the future."

However, the company noted that retail conditions in Ireland remained stagnant and said it had taken a $17 million charge against the business.

Returning to earnings, Mr Harvey said net profit from underlying business was down 29% on the previous corresponding period, however argued that this should be viewed in light of the retail boom conditions experienced during HY 2007.

The company, which has been shuttering stores because of the slump in consumer retail spending, said sales revenue rose to $770 million from last year's $765 million.