Nick Scali (NCK) H1 2026 earnings summary

Executive summary

• Group revenue for the half-year ended 31 December 2025 rose 7.2% year-over-year to $269.3m, with ANZ revenue up 13.1% to $251.7m and UK revenue at $17.6m, impacted by store refurbishments.

• Net profit after tax increased 36.4% year-over-year to $41.0m, with underlying growth of 29% and statutory growth of 36%.

• UK operations saw a net loss after tax of $5.6m, but gross margin improved to 59.2% and like-for-like sales in rebranded stores grew 32% in January.

• Six new stores are planned for ANZ in FY26, with further UK expansion opportunities under negotiation.

• Interim dividend declared at 39 cents per share, fully franked, up 30% year-over-year.

Financial highlights

• Group gross profit margin improved to 65.4% (up 3.1pp), with ANZ at 65.9% and UK at 59.2%.

• EBITDA rose 18.1% to $96.6m; EBIT up 25% to $68.5m.

• Operating cash flow before tax and lease payments was $51.5m; closing cash and equivalents at $91.7m, net cash $20.0m.

• Capital investments totaled $17.1m, including land acquisition and new showroom fit-outs.

• Borrowings stable at $71.7m; property debt secured at less than 30% LVR.

Outlook and guidance

• Strong written sales in May and June expected to support a robust first quarter FY26; five new ANZ stores confirmed for opening in FY26, with additional sites under review.

• UK January written sales reached $6.7m, with like-for-like sales growth of 32% for Nick Scali branded stores; further UK store opportunities under negotiation.

• Margin performance expected to remain consistent into the second half barring external shocks.