Nick Scali Says FY26 Group Net Profit Up 22%, 39c Payout

Nick Scali Limited (ASX:NCK) reported its results for the year ended 30 June 2026. Executive Chair and Chief Executive Anthony Scali said group net profit after tax increased 22% and group revenue grew 4% despite what he described as a subdued retail environment, with a 210 basis point improvement in group gross margin that he attributed to disciplined pricing, sourcing and inventory management. In Australia and New Zealand, net profit after tax was $80.5 million, an increase of 10.0% on FY25 underlying net profit after tax or 13% on FY25 statutory net profit after tax, where the FY25 underlying figure excludes $2.4 million of restructuring and integration costs relating to the UK acquisition and $2.8 million ($1.9 million post tax) of ANZ costs arising from the business failure of a freight forwarder. ANZ revenue was $476.7 million, up 5.1%, written sales orders were up 2.7% against a softer second half cycling off double digit growth in the fourth quarter of FY25, and gross margin rose 100 basis points to 66.0%. ANZ operating expenses increased $5.0 million on FY25 underlying, mostly from higher employment and additional marketing expense in the first half. In the United Kingdom the net loss after tax for the year was $4.8 million, comprising a $5.6 million first half loss and a $0.8 million second half profit; UK revenue was $40.0 million, $1.8 million below FY25 and affected by store closures for refurbishment, while the company said UK gross margin improved through the year, with deliveries of Nick Scali product taking it to an average of 60.3% for FY26 against 47.1% in FY25, and a second half margin of 61.2% against 59.2% in the first half.

The directors declared a fully franked final dividend of 39 cents per share, with a record date of 1 October 2026 and a payment date of 22 October 2026. During the year the group opened one Nick Scali store in Ballarat, Victoria and three Plush stores in Bendigo, Victoria, Tuggerah, New South Wales and Cannington, Western Australia, and closed two Nick Scali stores at Brisbane Airport and Toowoomba in Queensland; in the United Kingdom the Lincoln and Nottingham shared concessionary stores were closed. Two further Nick Scali stores were opened in July 2026 at Bendigo, Victoria and Bunbury, Western Australia. For the first five weeks of trading in FY27, ANZ written sales orders were flat on the same period a year earlier, cycling off high single digit growth, while UK written sales orders increased 35% on the prior corresponding period. The company said the four stores opened in FY26 and the two opened in July are expected to contribute positively to FY27 earnings, that a further four stores are expected to open during FY27, and that it expects to open one new UK store in October and is in negotiations on a number of other UK locations.