The Nick Scali Limited (ASX: NCK) share price is in focus today after the furniture retailer reported full-year net profit after tax up 22% to $75.7 million, with group revenue rising 4% to $516.7 million.
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What did Nick Scali report?
- Group revenue up 4% to $516.7 million
- Group net profit after tax (NPAT) rose 22% to $75.7 million
- EBITDA increased, with strong gross margin improvement (up 210 basis points to 65.1%)
- Australia and New Zealand NPAT up 10% to $80.5 million
- UK segment improved: second half profit of $0.8 million after first half loss
- Fully franked final dividend of 39 cents per share declared
What else do investors need to know?
Nick Scali's Australian and New Zealand division saw revenue up 5.1% to $476.7 million and maintained a healthy gross margin of 66%. Written sales orders for the region increased 2.7% for the year, despite a softer second half following strong Q4 growth in FY25.
In the UK, while revenue dipped slightly to $40 million due to temporary store refurbishments, gross margins improved significantly from 47.1% to 60.3%. Written sales orders in the UK jumped 31.4%, with like-for-like orders in the second half up 19% for showrooms open both periods.
The company opened four new stores in Australia during the year, and closed two less profitable outlets. Two more stores have opened in July, and the UK network was refined with two closures.
What did Nick Scali management say?
Anthony Scali, Executive Chair and CEO, said:
FY26 was another strong year for Nick Scali, with group Net Profit After Tax increasing 22% and group revenue growing 4% despite a subdued retail environment. The group delivered a 210 basis point improvement in gross margin, reflecting disciplined pricing, sourcing and inventory management.
What's next for Nick Scali?
The company is cautiously optimistic for FY27. In the first five weeks of the new financial year, written sales orders in ANZ were steady compared to last year, while the UK saw a 35% lift. Four recently opened stores, plus two more opening in July, are expected to help drive earnings.
Looking ahead, Nick Scali plans to open an additional four stores in Australia and New Zealand over FY27, with further UK expansion planned as the group negotiates new sites. Management aims to continue growing its presence while focusing on margin improvements.
Nick Scali share price snapshot
Over the past year, the Nick Scali share price has underperformed the S&P/ASX 200 index (ASX: XJO) with a disappointing 10% decline.
