Key Highlights

  • Nick Scali's 39 cent fully franked final Dividend went ex on 30 September 2026.
  • FY26 dividends totalled 78 cents per share, up 30%.
  • Revenue was $516.7 million and gross Margin was 65.1%.
  • Written orders, UK progress and housing conditions will shape the next dividend decision.

Nick Scali Limited (ASX:NCK) is a recent retail example among ex Dividend Dates on the ASX, with its 39 cent fully franked final dividend having gone ex on 30 September 2026. The Record Date was 1 October, and the payment was made on 22 October. Total dividends for FY26 were 78 cents per share, up 30%. The furniture retailer reported net profit after tax of $75.7 million and Revenue of $516.7 million, and management described itself as cautiously optimistic on the year ahead.

Dividend Dates in Sequence

The final dividend was declared with the FY26 result in early August. Shares traded ex-dividend on 30 September, with entitlement confirmed on the record date of 1 October. Payment followed three weeks later, on 22 October. This schedule is a typical example of how a company gives shareholders some weeks between the announcement and the ex-dividend date, with payment following soon after.

Full franking provides eligible Australian investors with credits for tax already paid by the company. The size of the increase in total dividends, up 30%, reflected higher profit during the year.

The FY26 Result

Group revenue rose about 4% to $516.7 million, and group gross margin improved 210 basis points to 65.1%. In Australia and New Zealand, revenue rose 5.1% to $476.7 million, net profit after tax rose 10% to $80.5 million and gross margin was 66%. In the United Kingdom, revenue was about $40 million, slightly lower due to temporary store refurbishments, while gross margin rose from 47.1% to 60.3%.

The UK Business posted a $0.8 million profit in the second half, after a first-half loss, with underlying losses for the year narrowing to $4.8 million. The improvement shows the potential contribution from that market after the company's Acquisition and integration work, although the business remains relatively small compared with the home market.

Order Trends

Furniture retailers usually recognise revenue when goods are delivered, so written orders provide an early indicator. Australian and New Zealand written sales orders rose 2.7% for the year, with a softer second half. UK written sales orders rose 31.4%, and like-for-like second-half orders in the UK rose 19% for showrooms open in both periods.

In the first five weeks of FY27, Australian and New Zealand written sales orders were steady year on year, and UK orders rose 35%. These early numbers predate subsequent changes in the economic environment, including the Reserve Bank's latest rate rise to 4.85%. How orders progressed through the rest of the first half will be an important element of the next result.

Sensitivity to Housing and Rates

Furniture Demand is closely linked to the housing market, as people often buy new furniture after moving house. The Reserve Bank has said housing prices have fallen significantly and that turnover is weaker, and it expects this to weigh on dwelling Investment and household consumption. Other retailers have also reported softer discretionary conditions, including JB Hi-Fi and Super Retail Group.

Fewer housing transactions could reduce some demand, while higher Mortgage repayments may reduce household budgets for large purchases. Variable mortgage rates at the major banks rise from 13 November. On the other hand, higher gross margins and a focused product range may provide some protection for a retailer in such a period, though the company will need to balance price and margin.

Store Network Plans

During FY26, four Australian stores opened and two less profitable outlets closed. Two more stores opened in July, and the UK network saw two closures. The company plans to open four more Australia and New Zealand stores in FY27 and to expand further in the UK as sites are negotiated. New stores typically add to sales over time, but they also involve costs and Lease commitments.

Showroom investment is a long-term decision, and sales from new stores take time to build. Chief executive Anthony Scali has led the company's expansion plans, and the results for these locations will be followed closely. The UK refurbishment program, in particular, may continue to influence both revenue and margins as stores are brought up to the company's preferred format.

What to Watch Next

The half-year result in early 2027 will provide the next financial update and Interim Dividend decision. Investors will focus on written orders, gross margin and the performance of newly opened stores. UK profit progress is another key item. Housing turnover and consumer confidence over the Christmas and January sale periods may also offer useful signals about demand for large household goods.

Retailers that take customer deposits can also have favourable working capital, as customers commonly pay a portion of the purchase price upfront and receive their goods later. Changes in written orders can therefore influence both revenue timing and cash flow. Investors reviewing the half-year result may look at customer deposits and inventory alongside sales.

Consumer finance offers are another consideration for furniture retailers, since interest-free terms can help customers spread the cost of a large purchase. Rising interest rates may increase the cost of providing those offers or reduce consumers' willingness to take on further commitments. Meanwhile, Supply chain and freight costs can influence gross margin, given that furniture is bulky and often imported. Any comment on these costs would add useful context for the next result.

Showroom costs and the rate of new openings will also influence profitability, particularly as wages and rents rise.

Those costs will be reported at the half-year result, along with any change to the outlook.

Key Takeaways

Nick Scali's 39 cent fully franked final dividend went ex on 30 September 2026, with a record date of 1 October and payment on 22 October. FY26 dividends totalled 78 cents per share, up 30%. Revenue was $516.7 million and gross margin was 65.1%. Written orders, UK progress and housing conditions will shape the next dividend decision.