Electrical and furniture retailer Harvey Norman Holdings Ltd (ASX:HVN) has posted a moderate rise in full-year sales, although its fourth-quarter figures were hit by weaker consumer sentiment.

The company had a 0.8 per cent increase in sales for the 2010 financial year to $6.08 billion, up from $6.03 billion in the previous corresponding period.

Harvey Norman stressed that leading retail indicators in Australia saw a large fall in household disposable income (HDI) and consumer sentiment for the last quarter.

Like-for-like sales of company moved up 0.2 per cent from last year's, while like-for-like sales in Australia plunged 3.4 per cent in the fourth quarter, Harvey Norman said.

The retailer added the results had been impacted by a 2.1 per cent depreciation in the New Zealand dollar, a 17.3 per cent decline in the euro and a 20.9 per cent reduction in the UK pound.

Under constant currency, New Zealand and Slovenia saw a positive quarter credited to improving conditions, while Ireland tracks at a similar pace to last year, according to Harvey Norman.

Australian retailers have been slapped this year as consumers face higher interest rates and energy costs, and the benefits of government stimulus handouts fade.