Furniture retailer Nick Scali has survived the trials and tribulations of FY20 unscathed, with annual net profit staying flat at $42.1 million and sales revenue only dropped 2.1 per cent to $262.5 million.
The profit result landed ahead of the business’ expectations of between $39 and $40 million, largely because of an increase in sales across Australia and New Zealand following each country’s respective lockdowns.
Trading in July was “extremely buoyant” according to the business, with written sales up 70 per cent on the same period of last year.
And, since 65 per cent of Nick Scali’s products are made to order with a delivery lead time of 9 to 13 weeks, the company’s opening order book for FY21 is significantly higher than in previous years.
“As a result of the strong sales revenue growth and after allowing for 6 weeks of temporary closures in our Melbourne showrooms, the company expects first half profits to up by at least 50-60 per cent when compared to 1H FY20,” the company wrote in a statement on the ASX.
“This remains subject to no further extensions of existing restrictions in Melbourne, further store closures across the network as a result of government imposed lockdowns, or any material delays in the supply chain affecting deliveries.”
The furniture and homewares space has seen stronger results than other parts of the industry, with many customers using the lockdown opportunity to redecorate or rethink their living spaces.
Online furniture business Temple & Webster grew active customers 77 per cent year on year during FY20, with many first time buyers coming online during Covid-19.