The Nick Scali Ltd (ASX: NCK) share price has jumped 10% in response to an impressive trading update.
Nick Scali has stores in Australia, New Zealand and the UK. It also has Plush stores in Australia.
FY26 trading update
The company announced an early Christmas present for shareholders in the form of a very strong trading update for the first half of FY26.
Nick Scali’s last update came on 29 October 2025 and the company’s revenue has been stronger than it was expecting since then.
FY26 first-half revenue for Australia and New Zealand is expected to be between 10% to 12% more than the previous year. That’s higher than the previous guidance of revenue growth of between 7% to 9% year on year.
Nick Scali said that as a result of the revenue growth in Australia and New Zealand, statutory net profit after tax (NPAT) for the group in the FY26 first-half is expected to be in a range of between $37 million to $39 million, compared to previous guidance of between $33 million to $35 million.
What to make of this
Clearly, the market is very pleased to see the numbers that Nick Scali reported.
It’s making stronger-than-expected financial progress, despite the tricky retail conditions.
Nick Scali is one of the leading retailers on the ASX, in my eyes. It delivers impressive profit margins, a good return on equity (ROE) and it has international growth potential with its presence in the UK.
I’m expecting the business to continue rolling out new stores in ANZ and the UK. If the company can have the same success in the UK as Australia, it could become a significantly more profitable business in the coming years. Selling items in the UK that are successful in the ANZ market is a smart and profitable move.
Is the Nick Scali share price a buy?
While it’s doing incredibly well, I don’t think it’s the right time to invest. I’d rather buy when the company’s outlook seems weak rather than a strong period of profit upgrades. Retail can be a cyclical industry.
For now, there are other ASX growth shares and ASX dividend shares I’d rather buy. But, Nick Scali is certainly one to watch.
