Nick Scali (NCK) H2 2026 earnings summary

Executive summary

• Group net profit after tax rose 22% year-over-year to $75.7m, with revenue up 4.3% to $516.7m and gross margin improving by 210 basis points to 65.6%.

• Cash on hand at year-end was $106.6m, and a fully franked final dividend of 39 cents per share was declared.

• ANZ segment delivered a 10% increase in net profit after tax to $80.5m, while the UK segment reduced its net loss to $4.8m.

• Written sales orders for the group rose 4.7%, with ANZ up 2.7% and UK up 31%.

Financial highlights

• EBITDA increased 13.6% to $180.7m and EBIT rose 18% to $124.7m year-over-year.

• Operating cash flow was $117.9m, up from $89.6m last year.

• Net cash after borrowings closed at $34.9m.

• ANZ revenue was $476.7m, up 5.1% year-over-year; UK revenue was $40.0m, down 4.3% due to store closures.

• UK gross margin improved significantly to 60.3% from 47.1%.

Outlook and guidance

• Four new stores opened in FY26, with two more in July and four additional stores planned for FY27.

• UK written sales orders for the first five weeks of FY27 up 35% year-over-year, but this is inflated by prior year closures.

• ANZ written sales orders for the first five weeks of FY27 were flat, cycling off high prior growth.

• Management expects ANZ gross margin to remain in the 65-66% range and UK margin to stay around 60-61%.

• Macro environment remains challenging, with weak consumer sentiment, declining house prices, and volatile trading.