Nick Scali shares surge amid FY25 sales momentum, improved outlook
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More news: Shares in Nick Scali surged in morning trade after the furniture retailer reported second-half sales growth year on year, even as net profit after tax for the full-year fell.
At 11:45am AEST, Nick Scali shares had lifted 9.1% to $20.91 and are up 41% in the year to date.
Citi analysts flagged that even though FY25 sales of $495 million missed consensus estimates of $508 million, according to Visible Alpha data, they "think the market will look through this" due to "top line momentum improving".
Despite reporting a 28.3% profit drop year on year, the furniture retailer’s ANZ group written sales orders were up 2.8% compared to FY24 as second half sales picked up 7.3% on the previous corresponding period.
The company also highlighted that ANZ group sales revenue for the first quarter FY26 is expected to be up on the prior year, with written sales for July up 7.7% year on year. Five new stores are expected to open across FY26 with “additional opportunities currently being reviewed”.
The Citi analysts also flagged that gross margins were a beat on consensus, and UK margins were posted material improvements in the second half of FY25 compared to the first half.
Nick Scali’s FY25 profit drops 28.3% year on year
The news: Furniture retailer Nick Scali has reported group full-year net profit after tax of $57.7 million, down 28.3% from $80.6 million last financial year.
The numbers: Group revenue for the full-year came in at $495.3 million, which is a 5.8% improvement year on year.
For the ANZ group, net profit after tax fell 13% to $71.3 million while UK net loss increased from $1.4 million in FY24 to $13.6 million in FY25.
The group declared a fully franked final dividend for the second-half of FY25 of 33 cents, in line with the 33 cents per share declared in the previous corresponding period. The final FY25 dividend has a record date of 2 October 2025.
Analysts had expected full-year net-profit of $59.6 million and a dividend of 22.8 cents per share, according to Visible Alpha data.
The context: ANZ group written sales orders were up 2.8% compared to FY24, with second half sales up 7.3% year on year.
In the first half of FY25, Nick Scali said one of its freight forwarders and customs agents entered administration after facing operational issues, which restricted access to containers that landed in Australia for several weeks.
Nick Scali's FY25 result includes the first full-year of reporting for Nick Scali's UK business, established following the acquisition of Fabb Furniture in May 2024.
Nick Scali's UK expansion has involved the refurbishment and rebranding of 12 stores, with the refurbishment program expecting to be completed in the first half of FY26.
