Nick Scali Ltd (ASX: NCK) shares are taking a beating today.
Shares in the S&P/ASX 200 Index (ASX: XJO) furniture retailer closed yesterday trading for $23.79. In early morning trade on Friday, shares are changing hands for $21.30 apiece, down 10.5%.
For some context, the ASX 200 is down 0.7% at this same time.
This underperformance follows the release of Nick Scali's half-year results for the six months to 31 December (H1 FY 2026).
Here's what we know.
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Nick Scali shares sink amid UK business losses
For the six-month period, Nick Scali reported a 7.2% year-on-year increase in revenue to $269.3 million.
And Nick Scali shares could catch some longer-term tailwinds, with the company achieving a 14.1% improvement in gross margin to 59.2%.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $96.6 million was up 18.8% from H1 FY 2025.
On the bottom line, the ASX 200 furniture retailer reported statutory net profit after tax (NPAT) of $41 million, up 36.4% year on year.
Breaking that down by regions, the company's UK statutory net loss after tax of $5.6 million was in line with management forecasts but still looks to be pressuring the stock today.
Nick Scali noted the UK segment loss reflected "lengthy store closures during the half associated with the refurbishment and rebranding program". UK half-year revenue of $17.6 million was down 39.5% from H1 FY 2025.
The ANZ business performed strongly, with a 36.7% year-on-year lift in statutory NPAT to $46.6 million. While H1 FY 2026 revenue was up 13.1% to $251.7 million.
In light of this performance, management declared a fully-franked interim dividend of 39 cents per share, up 30% from last year's interim payout.
If you're looking to bank the Nick Scali dividend, you'll need to own the stock at market close on 27 February. Shares trade ex-dividend on 2 March.
What did management say?
Commenting on the results that have yet to lift Nick Scali shares today, CEO Anthony Scali said:
The first half delivered solid sales and profit growth in ANZ with good progress made in the UK as the completion of store refurbishments and rebranding contributed to improvement in written sales orders.
Statutory net profit after tax for the group was up 36% on the prior year, reflecting 13% growth in sales revenue in ANZ and the improvement in gross profit margin in both the UK and ANZ.
Looking ahead, Scali added, "We continue to grow our store network across ANZ with six new stores to be opened in FY26, and several new store opportunities currently under negotiation in the UK."
Nick Scali share price snapshot
With today's intraday fall factored in, Nick Scali shares remain up 24.3% over the past 12 months, not including dividends.
