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Shares in furniture retailer Nick Scali (ASX: NCK) surged to a record high today after the company revealed a strong start to FY26 with double-digit growth in written sales orders and improvements in its UK operations putting it on track for a sharply improved bottom line in the first half.
The shares hit a high of $25.47, up almost 13 per cent, as the Sydney-based group said it was targeting a bottom-line profit of between $33 million and $35 million for the December half-year, up from $30 million a year earlier.
Managing director Anthony Scali told shareholders today that improved trading across Australia and New Zealand for the first quarter led to an 11.6 per cent increase in total written sales orders year-on-year, while same-store written sales orders rose 10.7 per cent.
Sales revenue for the September quarter also increased 6 per cent, with the company expecting revenue for the first half of FY26 to be between 7 to 9 per cent higher than a year ago.
Nick Scali, which last year acquired the struggling 21-store Fabb Furniture group with plans to revitalise the business, has also reported solid improvements for the UK operation.
After posting a net after-tax loss of $11.2 million for the UK business in FY25, Nick Scali says it is expecting another loss of between $5 million and $6 million in the December half although these losses are tipped to trend downwards in the second quarter.
Notably, the UK business has boosted margins in the first quarter to 58.3 per cent from 41 per cent when it was acquired last year and 47.1 per cent for FY25.
“We can now see a clear improvement in written sales which will transcend to better revenue results towards the end of the half,” Anthony Scali told shareholders.
“In the UK as more store refurbishments are completed, written sales orders have begun to improve.
“Nick Scali-branded stores for the August and September period were up 10 per cent on the same period when the stores traded as Fabb.
“During August and September there were 13 and 14 stores trading as Nick Scali respectively, with one to two stores closed for refurbishment.”
Scali says written orders for the company's branded stores in the UK for August and September were up 10 per cent on the previous period when the stores traded as Fabb.
"During August and September there were 13 and 14 stores trading as Nick Scali respectively, with one to two stores closed for refurbishment," says Scali.
"With all stores opened and trading, as stated during our FY26 results presentation, our break-even revenue position will be circa $53 million.
"Despite two key stores closed for refurbishment and others not yet rebranded, August and September total written sales orders were an encouraging $7.6 million."
Australian and New Zealand operations are also on the rise for Nick Scali which is targeting statutory net profit for these combined markets of between $39 million and $40 million after tax for the first half. This is up from $34 million in the previous corresponding period.
Over the current financial year, Nick Scali is planning to open five new stores in Australia and New Zealand, comprising three Nick Scali stores and two Plush stores.
“In the UK as more store refurbishments are completed, written sales orders have begun to improve,” says Scali.
“The board and I recognise that the success of Nick Scali Limited is the result of the dedication of our many employees and associates across Australia, New Zealand and the United Kingdom,” says Scali.
“We would like to take this opportunity to thank them for their hard work and commitment to the company.”
Scali also paid tribute to John Ingram, who presided over his last annual general meeting today.
Ingram, who has been chairman of the Nick Scali group since 2004 when the company listed on the ASX, is retiring to be replaced by Anthony Scali who will assume the executive chairman’s position.
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