Shares in appliance, white goods and furniture retailer Harvey Norman dived 7.5 per cent on Tuesday after January sales slid by double digits and first-half profits missed forecasts. But billionaire executive chairman Gerry Harvey says that despite the pullback in spending, Australia is not headed for a recession.

The company also disappointed investors with a lower interim dividend than expected, which led to a $386 million wipeout from its market capitulation and leaving Harvey Norman as the worst performer on Tuesday.