Highlights

  • FY26 group Revenue increased 4% to AUD516.7 million.
  • Net profit after tax increased 22% to AUD75.7 million.
  • Group gross Margin improved to 65.1%.
  • Early FY27 orders were flat in Australia and New Zealand but higher in the United Kingdom.

Nick Scali Limited (ASX:NCK) designs and retails furniture through company-operated stores in Australia, New Zealand and the United Kingdom. Its FY26 results showed higher revenue and profit alongside an improvement in gross margin, even as order growth moderated in its established Australasian market.

FY26 revenue, profit and margins

Nick Scali (ASX:NCK) reported group revenue of AUD516.7 million for FY26, an increase of 4%. Net profit after tax increased 22% to AUD75.7 million. Group gross margin improved by 210 basis points to 65.1%. The company declared a fully franked final Dividend of 39 cents per share.

The improvement in gross margin is an important part of the reported profit result, but the supplied financial summary does not establish a precise allocation of the gain among pricing, currency, freight or product mix. Those factors should therefore not be presented as confirmed causes.

For Australia and New Zealand, revenue increased 5.1% to AUD476.7 million, and segment net profit after tax rose 10% to AUD80.5 million. Gross margin for the region was 66%. The regional segment profit was higher than the group’s reported profit, indicating that results outside the segment and group-level items affected the consolidated outcome.

Written orders and store network

Written orders are a relevant indicator for Nick Scali (ASX:NCK) because customers generally place furniture orders before delivery and revenue recognition. Group written orders increased 2.7% during FY26, although the second half was softer. A weaker order trend may affect later sales periods, but the timing depends on fulfilment and deliveries.

The company opened four stores in Australia during FY26 and closed two locations. It opened two additional Australian stores in July 2026. Changes in store count affect sales capacity but also introduce rent, staffing and fit-out costs. The contribution from new stores depends on their trading performance rather than opening numbers alone.

Furniture purchases are discretionary and can be affected by housing transactions, household budgets and consumer confidence. These conditions can influence the pace at which written orders convert into future revenue. The company’s 2026 order figures provide a more direct operating indicator than broad assumptions about consumer spending.

United Kingdom operations

The United Kingdom Business remained much smaller than the Australasian operation. Nick Scali (ASX:NCK) reported approximately AUD40 million of United Kingdom revenue, slightly lower amid temporary store refurbishments. Its gross margin increased from 47.1% to 60.3%, while written orders rose 31.4%.

These figures show an improvement within the reported period, but a small second-half profit does not establish sustained profitability. Store refurbishment schedules, order fulfilment, overheads and future store openings may affect subsequent results.

FY27 outlook and risks

During the first five weeks of FY27, written orders in Australia and New Zealand were flat against the comparable period, while United Kingdom orders increased 35%. Nick Scali (ASX:NCK) planned four additional Australasian stores in FY27 and further United Kingdom expansion subject to suitable sites.

The main risks include weaker Demand for discretionary furniture, foreign-exchange and freight cost movements, store-level profitability and the possibility that the United Kingdom improvement does not continue. Future updates on written orders and margins will help distinguish underlying trading from the effects of store expansion.

Key Insights

Nick Scali (ASX:NCK) reported higher FY26 profit and gross margin while order growth slowed. The next operating test is whether Australasian orders recover and whether the United Kingdom business can sustain its improved second-half result.