Falling sales in Australia and Europe contributed to a slide of 17.5% in annual profit for Harvey Norman.
The ABC reports the furniture and electrical retailer made $A142.2 million in the last financial year.
Earnings were also affected by a property writedown worth $A41 million. Globally, sales were down 3%.
Chairman Gerry Harvey said the company remains in a strong financial position, with sales in July 5.3% higher than during the same month last year.
Harvey Norman's share price surged after the announcement. By 2:35pm (AEST) on Friday, it was trading 1.3% higher at $A2.95.