Nick Scali (NCK) H1 2026 earnings summary

Executive summary

• Group 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 38.5% due to store refurbishments.

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

• Group gross margin rose to 65.4% from 62.3%, with ANZ at 65.9% and UK at 59.2%.

• UK rebranded stores saw like-for-like sales growth of 32% in January, despite overall UK revenue decline.

• Interim dividend of 39 cents per share was declared, up 30% year-over-year.

Financial highlights

• Group NPAT increased 36.4% to $41.0m; EPS rose 36.5% to 47.9 cents.

• 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.

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

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

Outlook and guidance

• Five new ANZ stores confirmed for opening in FY26, with further expansion opportunities under review in the UK.

• ANZ written sales orders in January up 3.1% year-over-year; UK January written sales reached $6.7m, with LFL sales growth of 32% for Nick Scali branded stores.

• Margin performance expected to remain consistent in the second half, with potential FX benefits in the next financial year.