The Nick Scali Ltd (ASX: NCK) share price is in focus on Friday morning after the household furniture and accessories business reported its FY24 results.
The stock plunged more than 5% to $14.12 apiece in early morning trading as investors reacted to the update. At the time of writing, the Nick Scali share price has clawed back some ground to trade at $14.43.
Let's see what the ASX retail share reported.
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Nick Scali share price slips after mixed results
Key points in the company's financial results for the year ended 30 June 2024 include:
- Australia and New Zealand (ANZ) written sales orders of $447.4 million, a 2.4% increase from FY23.
- ANZ gross margin improved to 66.0%, up by 2.5% compared to FY23.
- Group underlying net profit after tax came to $82.1 million.
- The acquisition of Fabb Furniture in the United Kingdom was completed in May, adding 204 stores to the company's network.
- Cash and bank deposits were $111.3 million as of 30 June 2024.
- Final dividend declared at 33 cents per share, fully franked.
What else happened in FY24?
Despite these positive metrics, the group's revenue for FY24 was 7.8% lower than the prior year, with ANZ revenue down 9%.
Still, written sales orders in ANZ were actually up 2.4% on the prior year, amounting to $454.2 million. This includes $6.8 million of sales orders in the UK.
Nick Scali also expanded its store network domestically and internationally in FY24. It opened three new Plush stores in New South Wales, Queensland, and South Australia.
Meanwhile two underperforming Plush-branded showrooms were closed. The company now has 23 Plush showrooms featuring its new concept.
In the UK, the acquisition of Fabb Furniture added 204 stores to Nick Scali's portfolio.
However, the company noted that present trading conditions were challenging, with longer lead times due to supply chain disruptions.
What's next?
Looking forward, Nick Scali plans to continue expanding its presence in ANZ, with the anticipated opening of two new flagship stores and three to five Plush stores in FY25.
Written sales order growth for June and July combined was -1.2% compared to the prior year.
We continue to expand the store network and expect to open two Nick Scali stores and three to five Plush stores in FY25.
In the UK, the company expects trading conditions to remain tough this financial year.
Trading is expected to deteriorate further in the first half of FY25 as disruption increases due to store refurbishments and change in the product range.
Nick Scali share price snapshot
The Nick Scali share price has increased 32% over the past 12 months and is 14% higher this year.
With sales revenues down but written sales orders up, the stock is in focus today.
