Nick Scali (NCK) H2 2025 earnings summary

Executive summary

• Group revenue rose 5.8% year-over-year to $495.3m, with written sales orders up 8.4% to $493.8m.

• Underlying profit after tax was $62.0m, down 24.4% due to UK losses and one-off costs, while ANZ operations remained profitable.

• ANZ online written sales orders grew 21.8% to $42.4m, driven by eCommerce enhancements.

• UK expansion progressed with 12 stores refurbished and rebranded, improving gross margin in rebranded stores to 58% in May/June.

• Final dividend of 33 cents per share, bringing full year dividends to 63 cents per share, with 40% or full franking.

Financial highlights

• Group gross margin was 63.5%, down from 65.5% in FY24; ANZ gross margin at 65.0%, UK at 47.1%, with UK 2H margin at 51.8%.

• EBITDA was $159.1m, down from $175.0m in FY24; EBIT was $105.7m, down from $129.5m.

• Cash and bank deposits at year-end were $101.0m; net cash position of $29.3m.

• Inventory on hand at year-end was $44.6m; property at net book value of $120.1m.

• Dividend payout: 63 cents per share, fully or partially franked.

Outlook and guidance

• July written sales orders up 7.7% year-over-year; Q1 FY26 sales revenue expected to increase.

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

• UK losses expected to continue until all stores are refurbished and sales per store improve.