The Nick Scali Limited (ASX: NCK) share price has stormed higher in afternoon trade after the release of its annual general meeting presentation.
At the time of writing the furniture retailer's shares are up almost 5% to $6.49.
Investors appear to be pleased with the trading update included in today's presentation which revealed that the company is in a position to deliver another year of growth in FY 2018.
According to the update, although same store sales growth has been a little mixed this year and sales growth is expected to slow, the company's cost reduction and margin improvement initiatives appear to be progressing very well.
This is expected to result in first-half net profit after tax increasing between 10% and 15% on the prior corresponding period.
Based on this forecast, Nick Scali's shares are trading at approximately 13x forward earnings.
