The Nick Scali Ltd (ASX: NCK) share price has jumped 9% after reporting its FY25 result and revealing an FY26 update.
Nick Scali is a furniture business with a network of furniture stores across Australia and New Zealand. It also owns the Plush business in Australia, and a small network of stores in the UK it’s rebranding to Nick Scali.
Nick Scali FY25 result
Let’s look at the main financial highlights for the 12 months to 30 June 2025:
- ANZ revenue declined 1.4% to $453.5 million
- Total revenue grew 5.8% to $495.3 million
- Underlying EBIT (EBIT explained) fell 18.4% to $105.7 million
- Underlying net profit after tax (NPAT) declined 24.4% to $62 million
- Statutory net profit dropped 28.3% to $57.7 million
- Final dividend per share of $0.30, down 9.1%
- Total dividend per share down 11.8% to $0.60 per share
Let’s look at the breakdown of country performance.
Australia and New Zealand
The business reported that ANZ written sales orders for the period were $459.9 million, up 2.8% year on year. Written sales were stronger in the second half, with growth of 7.3% compared to the prior corresponding period.
Actual ANZ revenue in the second half declined 1%.
Online sales continued to increase, driven by enhancements in the e-commerce user experience, with written orders sales growth of 21.8% to $42.4 million.
In the second half of FY25, the gross profit margin improved to 65.6%, up from 64.4% in the first half.
UK performance
UK written sales orders were $33.9 million, which were impacted by stores being closed for refurbishment for long periods and the continuous clearance of old Fabb product range being sold from showrooms and warehouse inventory.
Even so, the UK gross profit margin improved throughout the period with deliveries of Nick Scali product starting in the second half. The second half gross margin was 51.8%, up from 45.1% in the first half. The gross margin for May and June was 58%.
Nick Scali said four stores were refurbished in the first half, with another eight refurbished and rebranded as Nick Scali since then.
New stores
During the period, one new Nick Scali store in NSW and one new Plush store in Victoria were opened. Two new Plush stores were opened in larger locations in NSW, with existing locations converted to clearance stores.
The UK Peterborough store was also close at the end of the lease as it was deemed “not suitable” to rebrand to Nick Scali.
Outlook for the Nick Scali share price
The company said it has identified a long-term opportunity of up to 86 Nick Scali stores and between 90 to 100 Plush stores. The long-term opportunity of growth of the UK store network has “not yet been confirmed”.
The trading update for July 2025 was very appealing. In ANZ, written sales orders were up 7.7% year on year, with like for like written sales orders growth of 7.2%.
ANZ sales revenue for the first quarter of FY26 is expected to be up on the prior year. A further five new stores were confirmed for opening during the year, with additional opportunities currently being reviewed.
In the UK, losses are expected to continue until remaining stores are refurbished and individual store sales improve.
I think Nick Scali is doing well at capturing the rebound in consumer sentiment following two RBA interest rate cuts. It could benefit further in FY26, but this may not be the right time to buy shares of a cyclical discretionary retailer like Nick Scali – I’d wait until investors are nervous about sales growth again.
There are other ASX dividend shares I’d rather buy.
