Nick Scali’s net profit dipped in the fiscal first half ended December 31 amid a sharp decline in Australia and New Zealand performance and softer-than-expected loss in the UK.
The furniture retailer’s net profit plunged 30.2 per cent to $30 million, with ANZ net profit tumbling 20.7 per cent to $34.1 million and UK net loss amounting to $4.1 million.
The group’s revenue decreased 1.8 per cent to $222.5 million.
During the period, four Fabb stores in the UK were refurbished and rebranded to Nick Scali. The company is set to continue the refurbishments and rebranding in the second half, where higher operating losses are expected compared to the first half.
“Our aim is to complete the refurbishment and rebranding of a further 8 stores by June 30, 2025,” said Anthony Scali, Nick Scali MD.
“The top selling Nick Scali sofa in ANZ is now the top selling sofa in our UK stores.”
The company said that the remaining Fabb stores are receiving the Nick Scali product, estimated gross margin on which when delivered ranges from 57 per cent to 59 per cent net of consumer finance costs compared to the Fabb gross margin of 41 per cent at acquisition.
Nick Scali also launched an online store in the UK last month and started its radio and television marketing in the country.
Meanwhile, Nick Scali’s ANZ business witnessed an 8.5 per cent decline in written sales order in January. The company is set to open a Plush store in Melton, Victoria in the second half, with further store openings to be delayed to fiscal 2026.
