Australian furniture group Nick Scali has reported a growth in sales, while the UK market saw losses narrow as performance improved.
According to its results for the full year ended 30 June 2026, total group sales rose 4.3% to $516.7m from $495.3m in 2025.
Group margin improved 2.1% to 65.6%, while EBITDA resulted at $180.7m, up 13.6% from $159.1m. Net profit rose 22.1% to $75.7m from $62m.
As for the UK, sales were 4.3% to $40m (£20.9m) from $41.8m (£21.8m), while group margin improved 13.2% to 60.3%, with a net loss of $4.8m (£2.5m), narrowing from a loss of $11.2m (£5.8m).
Commenting on the UK market, the group said: “UK net loss after tax for the year was $4.8m delivering a profit of $0.8m in 2H, following a $5.6m loss in 1H. UK written sales orders for the year were $45.0m a 31.4% increase on prior year orders.
“Written orders are not directly comparable year on year due to the disruption caused for refurbishments across the network between late 2024 through to December 2025. The LFL written sales orders for the Nick Scali UK showrooms trading year on year in 2H were up 19.0%.
“UK Revenue for the year was $40.0m, slightly below FY25 revenue by $1.8m impacted by store closures for refurbishment during FY26.
“UK gross margin improved significantly throughout the year with deliveries of Nick Scali product to average 60.3% for FY26. This compares to FY25 gross margin of 47.1%. 2H gross margin for the UK was 61.2%, compared to 1H of 59.2%.
“UK operating expenses in local currency terms were aligned to the prior year with savings in employment offset by logistics costs.”
During the year, the Lincoln and Nottingham stores were closed in the UK as they were shared concessionary stores and therefore not suitable in respect of its long-term network strategy.
Looking ahead on the UK, the group added: “The positive momentum in the UK continued into FY27, with written sales orders for the first 5 weeks increasing 35% on the prior corresponding period.
“The Group expects to open one new store in the UK in October and is in negotiations on a number of other locations as we continue to expand our presence in this important growth market.”
Anthony Scali, Executive Chair and CEO, said: “FY26 was another strong year for Nick Scali, with group Net Profit After Tax increasing 22% and group revenue growing 4% despite a subdued retail environment. The group delivered a 210 basis point improvement in gross margin, reflecting disciplined pricing, sourcing and inventory management.”
Furthermore, on the UK, Anthony hinted a future store growth on an earnings call following the results: “We need at least another 10 stores to be able to promote as we would like with a decent schedule. That costs money, but that’s what I think we need.”
