Electrical and homewares retailer Harvey Norman has lifted its half year profit by 36 per cent, as it overcame a tough retail market to grow sales.

Harvey Norman made a net profit of $111.4 million in the six months to December 31, up from $81.9 million in the same period in the previous year.

When changes in the value of its properties are excluded, the company’s profit for the half year grew by 3.6 per cent to $117.5 million.

Global sales also rose by 3.6 per cent, to $2.99 billion.

Australian sales rose by a modest 1.4 per cent over the six months, buoyed by strong figures over the Christmas period.

Sales in New Zealand were up by 15, due in part to a stronger New Zealand dollar.

Chairman Gerry Harvey said the retailer managed to grow its sales and profit in an environment where consumer spending was relatively soft.

Harvey Norman franchises achieved 3.6 per cent sales growth in December, compared on a like-for-like basis to the previous December, he said.

“That’s a pleasing set of numbers for the important Christmas trading period,” Mr Harvey said in a statement.

The company’s growing property portfolio, worth almost $2.3 billion, had also provided the company with stability, he said.

“To my mind, our ownership of real property is an absolute competitive strength when compared with the intangibles and goodwill that figure prominently on the balance sheets of many of our competitors.”

Harvey Norman will pay a fully franked interim dividend of six cents per share, up from 4.5 cents in the previous year.

Its shares gained eight cents, or 2.6 per cent, to $3.21.