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% and UK revenue down 38.5% due to store refurbishments.

• Net profit after tax increased 36.4% to $41.0m, with underlying ANZ NPAT up 29% and statutory up 37%.

• UK segment reported a net loss after tax of $5.6m, impacted by store closures, but gross margin improved to 59.2%.

• Written sales orders increased 10.5% year-over-year, with like-for-like written sales up 10.1%.

• Interim fully franked dividend of 39.0 cents per share declared.

Financial highlights

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

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

• ANZ written sales orders rose 10.5% to $229.8m; UK written sales orders increased 12.8% to $21.7m.

• EBITDA for the group was $96.6m, up from $81.8m in 1H FY25; EBIT reached $68.5m, up from $54.8m.

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

Outlook and guidance

• Five new stores are planned for the second half of FY26, with further opportunities under evaluation.

• ANZ written sales in January 2026 increased 3.1% year-over-year; UK written sales in January were $6.7m, with like-for-like sales in converted stores up 32%.

• New product introductions based on Australian bestsellers are planned for the UK.

• Margin performance expected to remain consistent in the second half, barring external factors.