Furniture retailer Nick Scali has warned investors about weakening sales in the Australia and New Zealand business amid a troubled consumer environment and following a cyberattack.

The mid-August attack caused “uncertainty and delays” for customers, Nick Scali said at the time. The ASX-listed retailer notified the Australian Cyber Security Centre and the Australian Federal Police, which investigated the incident.

This, coupled with ongoing uncertainty in its core markets, led to a 15 per cent decline in sales orders for the first quarter of the year, compared to the same period in the year prior. First-quarter sales for fiscal 2026 grew by 11 per cent.

“ANZ revenue for the first half is expected to be approximately 11 per cent to 14 per cent below the prior corresponding period,” the company told investors.

However, the company’s UK business, launched in 2024 with the acquisition of Fabb Furniture, is performing more strongly. Nick Scali says it has continued to invest heavily in renovating and expanding its store network there.

These investments are starting to pay off, with written orders up 29 per cent in the first quarter compared with a year earlier. Like-for-like sales will rise 14 per cent, with the difference between the two figures reflecting stores that were closed for refurbishment during the monitoring period.

“The company expects to open one new UK store in late December as it continues to expand the Nick Scali store network in the UK,” the retailer added.

“The company continues to maintain a strong balance sheet and remains focused on maintaining gross margins, disciplined cost management, expanding its store network and continuing to improve the performance of the UK business.”