UPDATE 1-Australia's Harvey Norman Q4 sales up, but shares fall

* Q4 sales growth weaker than expected

* Shares fall over 8 percent

* Retail margins remain under pressure, company says (Adds analyst comment)

MELBOURNE, July 21 (Reuters) - Harvey Norman Holdings Ltd (HVN.AX), an Australian furniture and appliances retailer, said on Tuesday like-for-like fourth quarter sales rose 2 percent, but the result was weaker than expected, knocking its shares down over 8 percent.

It also warned that retail margins remain under pressure.

The market had been expecting a better result after rival electrical goods retailer JB Hi-Fi Ltd (JBH.AX) and up-market department store chain David Jones Ltd (DJS.AX) raised their full-year profit forecasts last month.

"It's a little bit disappointing. The stock had run up in anticipation of a good outcome, because (chairman) Gerry (Harvey) had been saying openly that sales had been quite strong," said Sondal Bensan, an analyst at BT Investment Management.

Retail sales in Australia have mostly kept rising through the global economic turmoil as the nation's economy has dodged a recession and government stimulus packages have kept consumers spending.

Harvey Norman shares fell as much as 8.6 percent to a low of A$3.17 after the announcement and last traded at A$3.22.

The company said overall fourth quarter sales rose 4.5 percent to A$1.49 billion ($1.21 billion), taking its full year sales for the year to June 30 up 3.8 percent to A$6.0 billion.

Like-for-like fourth quarter sales in Australia jumped 5 percent, the company said.

Top Australian retailer Woolworths Ltd (WOW.AX) reports its fourth quarter sales on Wednesday. ($1=1.227 Australian Dollar) (Reporting by Sonali Paul; Editing by Jonathan Standing)