Results furnish dividend
A sales boost from new stores in Australia and New Zealand has helped lift retailer Nick Scali’s first-half profit by 15 per cent but conditions will be challenging going forward.
A SALES boost from new stores in Australia and New Zealand has helped lift furniture retailer Nick Scali’s firsthalf profit by 15 per cent but conditions will be challenging going forward.
Nick Scali’s net profit was $23.5 million in the six months to December on revenue up 8.1 per cent to $128 million.
Managing director Anthony Scali said six stores opened during the period and performed above expectations.
The Sydney-based company expects its full-year profit to be 5-10 per cent higher than the $37.2 million it made in the year to last June. But it warned sales slipped last month amid volatile conditions.
“It’s difficult because we are coming off really high bases from the last two years,” Mr Scali said. “If I Iook at the first week of February it was positive again, so there is nothing untoward. Same-store sales are going to be challenging going forward. What’s going to underpin our profit will be these new stores.”
Two new stores are set to open in the six months to June or early next financial year, with a long-term target for 75 stores – up from 52 now.
Nick Scali will pay a fully franked interim dividend of 16c a share, up 2c from a year ago.
Shares in the retailer closed 8c, or 1.2 per cent, lower yesterday at $6.90.