Australian furniture group Nick Scali has reported a growth in half year sales while stating that the UK is making good progress.
According to its half year results ended 31 December 2025, total group sales rose 7.2% to $269.3m from $251.1m. Profit after tax resulted at $41m, up 23.1% from $33.3m.
For the UK market, sales declined 38.5% to $17.6m from $28.6m, while gross margin improved to 59.2% from 45.1%. UK net loss after tax resulted at $5.6m, widening from $4.1m.
Commenting on the UK, Nick Scali said: “UK statutory net loss after tax was in line with forecast at $5.6m, reflecting lengthy store closures during the half associated with the refurbishment and rebranding program.
“UK written sales orders for 1H FY26 were $21.7 million. Whilst this is a 12.8% increase on sales orders vs 1H FY25, year on year comparatives for the period are not representative of trading due to numerous store closures for lengthy periods for store refurbishments.
“Revenue of $17.6m in 1H FY26 is below 1H FY25 of $28.6m, also impacted by numerous store closures during the half. UK gross margin for the half was 59.2%, significantly above 1H FY25 gross margin of 45.1%. UK 1H FY26 operating expenses were $10.8m.
“Excluding currency movement total operating expenses are in line with 1H FY25, with savings in employment and property costs offset by increased marketing spend. A number of new stores are currently in negotiations with a strong focus on growing the store network.
“With the majority of the store refurbishment program now complete, we have seen improvement in written sales compared to the prior year. Total January written sales were $6.7m, and the four Nick Scali branded stores that were trading in January FY25 achieved LFL sales growth of 32% in January FY26.”
Anthony Scali, Executive Chair and CEO, said: “The first half delivered solid sales and profit growth in ANZ with good progress made in the UK as the completion of store refurbishments and rebranding contributed to improvement in written sales orders.
“Statutory net profit after tax for the group was up 36% on the prior year, reflecting 13% growth in sales revenue in ANZ and the improvement in gross profit margin in both the UK and ANZ. We continue to grow our store network across ANZ with six new stores to be opened in FY26, and several new store opportunities currently under negotiation in the UK.”
During the period, the company closed its Lincoln store in the UK due not being suitable to the rebrand, while 16 stores were converted to the mixed branding and product range.
Nick Scali is focusing on expanding its presence in the UK market, with plans to open five additional stores, while its longer-term target is to reach around 60-70 stores. The company aims to reach a break-even point in the UK with GBP 51 million in sales revenue. It also plans to increase marketing spending based on store performance.
