Nick Scali shares drop after full-year profit slide
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More news: Shares in Nick Scali slipped more than 3.5% to $14.30 after the furniture retailer reported a 20% slide in full-year profit along with a 7.8% drop in revenue amid lower traffic at stores.
Written sales orders for the main Australia and New Zealand market were up 1% on a like-for-like basis, the company said.
Nick Scali posts drop in full-year profit, revenue
The news: Furniture retailer Nick Scali has reported a decline in first-half profit and sales amid lower traffic at stores and as delivery lead times returned to pre-Covid levels.
The numbers: The company posted a net profit of $80.6 million for the year to 30 June, down 20.3% from a year ago, and below analyst estimates of $81.8 million.
Revenue for the year was down 7.8% to $468.2 million. It declared a final dividend of 33 cents a share, down from 35 cents a year ago.
The context: Written sales orders for the main Australia and New Zealand market were up 1% on a like-for-like basis. The group said revenue in the prior year had benefited from increased deliveries. As a result, ANZ revenue dropped 9% during FY24, while operating expenses increased by $3.1 million.
The group acquired specialist UK retailer Fabb Furniture in May, with the transaction adding $3.3 million in operating expenses.
Trading conditions have continued to remain weak in both the ANZ and UK markets, and is expected to deteriorate further in the UK market during the first half of the current fiscal, the company said.
The source: ASX announcement
