Nick Scali shares jump on Q1 sales growth
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The news: Furniture retailer Nick Scali was one of the top performers on the ASX 200 in early trade after reporting an 11.6% uptick in first-quarter written sales orders across Australia and New Zealand.
The numbers: Nick Scali shares were up 12.2% to $25.23 at 11:28am AEDT, taking 12-month gains to 77.2%.
The group recorded an 11.6% rise in quarterly written sales orders compared to the prior corresponding period. Same store written sales ordered increased 10.7% year on year.
Sales revenue rose 6%, with first-half revenue expected to be 7-9% higher than the same period last year.
The context: Citi analyst William Park called it a "strong AGM update", bucking the trend of other housing retailers that reported a recent softening in ANZ sales.
However, Park noted that first-half profit guidance of $33 million to $35 million falls below consensus estimates of $35.9 million.
What they said: "It's not precisely clear what's driving weaker profit guidance, but we think it could be greater than expected UK losses, which in any event start to trend downwards in 2Q26 vs 1Q26," Park said.
The source: ASX
