Harvey Norman receives 'please explain' notice from Australian stock exchange

Insiders Sell Harvey Norman

Insiders Sell Harvey Norman

Credit Suisse believes that, depending on Amazon's impact, Harvey Norman's earnings could fall between 3 and 9 per cent, while a Citigroup report previous year estimated the retailer's profits could fall 19 per cent.

Harvey Norman shares fell nearly 9 per cent on Monday, posting their biggest decline in five years, after executive director David Ackery revealed he had sold $1.5 million shares only a day after managing director Katie Page sold $1.06 million.

In response to the Australian stock exchange notice issued yesterday, Harvey Norman said it was "not aware of any information concerning it that has not been announced to the market which, if known by some in the market, could explain recent trading in its securities".

Mr Ackery revealed he had sold $1.5 million shares only days after managing director Katie Page sold $1.06 million. This comes after chief executive Kay Page last week also reduced her shares in the company.

Credit Suisse believes that, depending on Amazon's impact, Harvey Norman's earnings could fall between 3 and 9 per cent, while a Citigroup report past year estimated the retailer's profits could fall 19 per cent.

The shares peaked eight-year highs of $5.38 last August Since it reported better than expected results for the December half years the shares have lost 16% (with half of that coming yesterday). We're talking major losses for JB Hi-Fi, Myer and Harvey Norman.

Long-time Harvey Norman executive director David Ackery sold A$1.5m worth of shares the next day on March 15 to pay off an ANZ loan he had secured against his stake in the retailer.

The ASX announcement also included questions about an Australian Financial Review (AFR) article published this weekend which raised questions about transparency of the company's accounts and its franchisee business.

However, the company replied that the reports were false, based on false statements and assumptions.

It said the company was in compliance with its listing and continuous disclosure obligations.