Harvey Norman provided a trading update informing the market that sales are in decline, profit is down almost 50% so far and it will consider buying back shares. Harvey Norman is undergoing a rapid reset of earnings post COVID-19. The concern on our mind is the loss of market share in Australia and NZ over the past four years. The unknown is how much of its weaker sales and earnings is a function of excess inventory. Earnings are likely to trough this year, but the recovery may underwhelm, particularly as its retail property is revalued lower.