Harvey Norman's pre-tax profit for the first nine months of the financial year is down 25 per cent as sales continued to fall in the first quarter.

The retailer's shares fell 4.8 per cent, or 10 cents, to $1.97.

The company said its profit before tax and minority interests for the nine months to March 31 was $204.8 million, down from $272.3 million in the previous corresponding period.

The result clearly shows the impact of aggressive competitor activity in the audio/video and information technology sector, Harvey Norman said.

Morningstar retail and media analyst Tim Montague-Jones said retailers in general had been hit by a combination of cyclical weakness and discounting. Short-term factors such as a mild summer had also taken their toll on sales of air-conditioning units, which had hurt Harvey Norman.