Nick Scali Ltd (ASX: NCK) expects first-half FY26 sales revenue to be 7–9% higher year on year, underpinned by an 11.6% rise in total written sales orders across Australia and New Zealand (ANZ) in the first quarter and a 6% rise in revenue. The company guides to statutory NPAT of $33–35 million for 1H FY26, up from $30 million a year earlier.
The stock jumped 12% to $25.16 after touching a record $25.19. It is currently sitting slightly higher again at $25.26.
FY25 wrap
ANZ performance: Written sales orders were $460 million for FY25, up almost 3%, with second-half growth of 7.3%. ANZ revenue was $453.5 million, down 1.4% on FY24. Gross margin held at 65% despite higher shipping costs in 1H. Underlying operating expenses rose $6.1 million, mainly property and labour. A one-off $2.8 million pre-tax cost ($1.9 million post-tax) was recognised following the failure of a freight forwarder in 1H. Statutory ANZ NPAT was $71.3 million.
UK acquisition bedding down: The newly acquired UK business (Anglia Home Furnishing, acquired May 2024) delivered FY25 revenue of $41.8 million. Clearances of legacy Fabb product and extensive refurbishments/rebranding caused disruption, resulting in a FY25 statutory net loss after tax of $13.6 million. Gross margin improved materially to 47.1% for the year and 51.8% in 2H (c.41% at acquisition).
Cash and balance sheet: Operating cash flow was $54.7 million. Borrowings were unchanged at $71.7 million with “substantial covenant headroom”. Capital investment of $14.6 million covered UK showroom refurbishments, a new WA distribution centre fit-out, ANZ refurbishments and new store openings. Dividends paid in the year totalled $53.8 million.
Cash and bank deposits at period end were $101 million.
Network and online
The group ended June 2025 with 130 stores. In ANZ, two new showrooms opened (Nick Scali Artarmon, NSW; Plush Melton, VIC). Plush also relocated two NSW sites to larger formats, retaining former sites as clearance outlets. In the UK, Peterborough closed at lease end; 11 stores were converted to Nick Scali branding during FY25, with the remainder due in FY26.
ANZ online written sales orders rose 21.8% year on year following e-commerce improvements.
Dividends
Directors declared a fully franked final dividend of 33.0 cents per share on August 8, 2025, taking the FY25 total to 63.0 cents (payout ratio 87%). The final dividend had a record date of 2 October 2025 and was paid on 28 October 2025.
Trading update and outlook (FY26)
ANZ: Q1 FY26 total written sales orders up 11.6%, same-store orders up 10.7%; Q1 sales revenue up 6%. ANZ statutory NPAT for 1H FY26 is expected at $39–40 million (vs $34 million PCP). Five new ANZ stores are planned in FY26 (3× Nick Scali, 2× Plush).
UK: As refurbishments progress, written sales momentum is improving; Nick Scali-branded stores in August–September were up ~10% versus when trading as Fabb. August–September written sales totalled A$7.6 millionwith some stores still closed.
The UK gross margin in Q1 was 58.3% (41% at acquisition; 47.1% in FY25). Management reiterates a ~A$53 million revenue breakeven once all stores are open. Statutory UK losses in 1H FY26 are expected at A$5–6 million (including ~$0.7 million AASB 16 impact), with losses moderating in Q2.
Governance changes include the retirement of long-serving chair John Ingram, who has led the board since listing in 2004.