Harvey Norman chairman Gerry Harvey is holding out the prospect of a share buy-back to lift shareholder spirits after the retailer's decision to slash its final dividend despite record profits sent the shares down more than 7 per cent.

Harvey Norman cut its final dividend by 5¢ to 12¢ a share to preserve cash, despite lifting bottom-line net profit by 29 per cent to a record $448.9 million after riding the tailwinds of the housing and property booms.