Nick Scali (NCK) H1 2026 earnings summary

Executive summary

• Revenue for the half-year ended 31 December 2025 increased by 7.2% to $269.3m, with ANZ revenue up 13.1% and UK revenue down due to store refurbishments; group written sales orders rose 10.7%.

• Net profit after tax rose to $41.0m, up 36.4% year-over-year, with ANZ NPAT at $46.6m and UK reporting a net loss after tax of $5.6m.

• Interim dividend declared at 39 cents per share, fully franked.

• UK operations impacted by store closures for rebranding, but like-for-like sales in rebranded stores grew 32% in January.

Financial highlights

• Group gross profit margin improved to 65.4% from 62.3% year-over-year; ANZ margin at 65.9%, UK at 59.2%.

• Operating expenses increased, mainly due to employment bonuses and higher marketing spend.

• Cash and bank deposits at period end were about $91.7m, with net cash position of $20.0m.

• Interim dividend of 39 cents per share paid or declared.

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

Outlook and guidance

• Written sales in May and June FY 2025 were strong, supporting a robust start to FY 2026; five new stores are planned for 2H FY26.

• Management expects gross margin to remain consistent in the second half, with potential for improvement in the UK as brand awareness grows.

• FX benefits, if any, are expected to be realized in the first half of the next financial year.