Sales and profits at electronics retailer Harvey Norman have fallen for the first time since the start of the pandemic as the company weathered lockdowns and new COVID outbreaks.

In an update to investors on Friday morning, the company revealed its total sales for the six months to the end of December fell 6.2 per cent to $4.9 billion.

Underlying net profit after tax also fell, sliding 22 per cent to $340 million, though when taking into account revaluations on Harvey Norman’s extensive property portfolio, profits only fell 6.7 per cent to $430 million.

This marks the first time Harvey Norman has seen its sales and earnings go backwards since the start of the COVID-19 pandemic, as the business has been a major beneficiary from the shift to working from home and the booming housing market.

Executive chairman and founder Gerry Harvey said the result was solid given the turbulent trading conditions. The company declared a 20 cent per share dividend, flat on last year’s interim dividend, payable May 2.

“This is a solid result given the unprecedented COVID-19 issues encountered by the consolidated entity during this half,” Mr Harvey said.

“The Australian franchising operations segment ... was affected by nearly four months of government mandated closures affecting over 15 million people or 58 per cent of the Australian population.”

“Franchising operations profitability improved in the second quarter as the ‘Delta’ restrictions progressively lifted from mid-October 2021, with the pent-up demand resulting in an acceleration in franchisee sales post lockdown.”

“This momentum continued into the Christmas trading period despite the looming threat of ‘Omicron’ to close out the second quarter only 1.7 per cent down on the record same quarter last year.”