NICK SCALI REVENUE OUTLOOK PLUSH
THE nation’s appetite for couches, lounges and dining tables has not been dented by interest rate rises and pressures on household budgets, with furniture retailer Nick Scali posting strong sales growth for the first four months of 2023 and forecasting as much as a 66 per cent leap in first half profitability.
Addressing shareholders at Nick Scali’s annual general meeting on Thursday, chief executive and major shareholder Anthony Scali said group margins were improving following its acquisition of the Plush furniture chain, while order volumes were the strongest in July and October.
For the four months to the end of October, sales revenue was $194m, reflecting a continuation of the record deliveries achieved in the fourth quarter, he said.
“This has been a tremendous achievement by our distribution teams which demonstrates the operational capacity in the business to support future volume growth.”
Mr Scali said October year to date sales revenue was 74 per cent above the same period in the prior year, which was before the Plush acquisition in November 2021. Group margin for the four months improved 180 basis points to 61.3 per cent versus the 59.5 per cent reported for the second half of fiscal 2022, following the
Plush acquisition. “We expect gross margin to continue to improve over fiscal 2023 with further realisation of the Plush synergies,” Mr Scali said.
Group written sales orders soared 55 per cent to $148m over the four months, with the strongest trading months being July and October.
Nick Scali brand written orders were 21.7 per cent above the first four months of the prior year and 35 per cent above the pre Covid-19 fiscal 2020 year.