Nick Scali suffers half-year revenue stoop as UK | Australian Markets
Shares in furnishings retailer Nick Scali have surged to report highs regardless of it posting a stoop in first-half revenue, weighed by the poor efficiency of its newly acquired British chain Fabb.
Nick Scali revealed on Friday group internet revenue slid 30.2 per cent to $30 million within the six months to the top of December, owing to losses within the UK home furnishings retailer.
Fabb — included in Nick Scali’s reporting for the primary time — posted an underlying internet loss of $2.8m, decrease than the $3.3m to $3.8m loss forecast.
The company stated the lacklustre efficiency at Fabb’s 21 shops, acquired early final yr, was attributable to store closures because it refurbishes and rebrands as Nick Scali.
Traders had been unconcerned by the news, sending Nick Scali shares closing at a report high of $18.
“Re-branded Nick Scali UK stores were the top-three performing UK stores in January 2025 for written sales orders, only one of which was in the top five under Fabb,” Nick Scali managing director Anthony Scali stated.
“Our aim is to complete the refurbishment and re-branding of a further eight stores by 30th June 2025.
“The top-selling Nick Scali sofa in ANZ is now the top selling sofa in our UK stores. This supports our belief that the Nick Scali product range will appeal to UK customers.”
It declared an interim dividend of 30¢ a share, absolutely franked. That’s down from 35¢.
The Australian and New Zealand arm — which lately skilled disruptions attributable to the collapse of one of its freight forwarders that led to supply complications — reported a 1.8 per cent decline in income to $222.5m, with statutory internet revenue down 20.7 per cent to $34.1m.
Underlying internet revenue for the Australian and New Zealand division hit $36m, above steerage of between $30m and $33m.
Final November, Nick Scali flagged it was anticipating to incur sudden extra storage prices for tons of of containers full of furnishings attributable to delays attributable to the failure of freight line Lion International Forwarding.
Friday’s outcomes show it incurred a one-off expense of $2.8m from intensive detention and demurrage charges attributable to Lion’s collapse, proscribing entry to its containers landed into Australia for a number of weeks.
Nick Scali warned trading continued to be unstable with written gross sales orders down 8.5 per cent in January and 5 per cent within the first week of February. This was in contrast with gross sales growth of 4.2 per cent in December.
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