The Nick Scali Ltd (ASX: NCK) share price is up more than 1% after reporting strong growth in the FY26 result.
Nick Scali is a furniture retailer with a presence in Australia, New Zealand and the UK. It also owns Plush in Australia.
FY26 result
Here are the highlights from the 12 months to 30 June 2026, comparing the FY25 underlying results to the FY26 report:
- Total revenue grew 4.3% to $516.7 million
- Gross profit margin improved 210 basis points (2.10%) to 65.6%
- EBITDA (EBITDA explained) grew 13.6% to $180.7 million
- EBIT rose 18% to $124.7 million
- Net profit after tax (NPAT) rose 22.1% to $75.7 million
- Final dividend up 30% to $0.39 per share
- Total dividend per share up 30% to $0.78
What happened in the result?
There was a different performance by Nick Scali’s two main geographic markets.
ANZ Group revenue increased by 5.1% to $476.7 million, with the gross profit margin improved by 100 basis points (1.00%) to 66%. ANZ net profit rose 10% to $80.5 million.
UK revenue decreased 4.3% to $40 million, but the gross profit margin soared to 60.3%, up from 47.1%. This helped its net loss after tax increase 57.1% to $4.8 million.
Nick Scali’s management said this was a strong year despite a subdued retail environment. The huge increase in the gross profit margin reflects disciplined pricing, sourcing and inventory management.
During the year, one new Nick Scali store in Ballarat, Victoria and three new Plush stores in Bendigo, Tuggerah and Cannington. Two Nick Scali stores were opened in July 2026 (in FY27) – Bendigo and Bunbury.
The company also closed the Lincoln and Nottingham stores in the UK because they were shared concessionary stores and therefore “not suitable” for its long-term network strategy.
Outlook for the Nick Scali share price
In Australia and New Zealand, the first five weeks of FY27, written sales orders were flat when compared to the same period last year, cycling off high single digit growth.
The four new ANZ stores opened during FY26 and the further two in July, to contribute positively to FY27 earnings.
A further four ANZ stores are expected to be opened during FY27.
Nick Scali said that the positive momentum in the UK continued into FY27, with written sales orders for the first five weeks increasing 35% year on year. It expects to open one new store in the UK in October. It’s in negotiations on a number of other locations, as it continues to expand in that growth market.
I think it’s one of the best retailers on the ASX and it has a compelling outlook with store growth. I believe it’s a great business to buy during market uncertainty about retail spending.
It’s one of the underrated ASX dividend shares Aussies can buy, with it down around 30% in the last six months.
