How Did Nick Scali (ASX:NCK) Improve FY26 Margins Across Markets?

Sonal Goyal

27 October 2026 05:55 PM AEDT

How Did Nick Scali (ASX:NCK) Improve FY26 Margins Across Markets?

Image Source: Shutterstock

You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research. Learn more

Start Your Free Trial Now!

Highlights

FY26 statutory NPAT rose 31.2% to AUD 75.7mn.
UK gross margin advanced from 47.1% to 60.3%.
The full-year dividend increased from 60 cents to 78 cents per share.

On 27 October 2026, Nick Scali (ASX:NCK) was quoted at AUD 12.56, down 1.02% at the time of writing during the Australian trading session. Nick Scali operates in the retail and consumer services sector. Its 7 August 2026 company announcement provides the latest business and financial details discussed below. The intraday share movement is presented separately from those earlier company disclosures.

Consolidated Results

Nick Scali’s 7 August 2026 FY26 announcement reported revenue of AUD 516.7mn, up 4.3% against FY25. Underlying NPAT increased 22.1% from AUD 62.0mn to AUD 75.7mn. Statutory group NPAT rose 31.2% from AUD 57.7mn to AUD 75.7mn. Comparatives for underlying FY25 profit exclude specified restructuring and logistics-related costs.

Australia and New Zealand

Australia and New Zealand revenue rose 5.1% to AUD 476.7mn from AUD 453.5mn. Underlying NPAT for the region increased 10.0% to AUD 80.5mn. The regional gross margin advanced from 65.0% to 66.0%. Written sales orders grew 2.7% for FY26, with management noting softer growth in the second half.

United Kingdom Performance

UK revenue was AUD 40.0mn, down from AUD 41.8mn in FY25. The UK net loss narrowed from AUD 11.2mn underlying in FY25 to AUD 4.8mn in FY26. Management reported a profit of AUD 0.8mn in 2HFY26 following a AUD 5.6mn loss in the first half, while UK gross margin increased from 47.1% to 60.3%.

Written Orders and Showrooms

UK written orders were AUD 45.0mn, up 31.4%, although the company cautioned that refurbishment interruptions make full-year comparisons less direct. Like-for-like UK showroom written orders were up 19.0% in 2HFY26. In Australia, Nick Scali opened one new store and three Plush stores during FY26, while two Nick Scali stores closed.

Store Development Plans

The business opened additional Nick Scali stores in Bendigo and Bunbury during July 2026. It outlined plans for four further Australia and New Zealand openings in FY27. For the UK, management referred to a planned October opening and discussions about other locations. First-five-week FY27 Australian and New Zealand written orders were flat year on year, against a 35% rise in UK orders.

Dividends and Core Business

The board declared a fully franked final dividend of 39 cents per share, taking FY26 dividends to 78 cents from 60 cents in FY25. Nick Scali retails furniture through Nick Scali and Plush in Australia and New Zealand and operates an expanding UK showroom network. The company reported gross margin improvements associated with product sourcing, pricing and inventory management.

Business Overview

Nick Scali sells furniture through Nick Scali and Plush retail operations in Australia and New Zealand, alongside a UK showroom business. The company reports revenue, written orders and gross margins by geography. Store openings, refurbishments, inventory procurement and product mix are part of its operating update.

Risks and Catalysts on Watch

Consumer demand for furniture, promotional pricing, freight and store development can influence outcomes. The UK network remains in transition, while written-order movements and regional gross margins provide information about operating developments.

Operating Figures in Context

For Nick Scali (ASX:NCK), the published figures distinguish financial results for the identified reporting period from current market trading. Earnings measures such as statutory profit, underlying profit and EBITDA are not interchangeable, and the company’s announcement specifies which measures have been adjusted. Comparisons with FY25 relate to earlier reporting periods and should not be read as outcomes from the share-price session described in the introduction. The development programmes and targets disclosed by management are plans, with their eventual status to be established through later regulatory announcements.

Key Developments to Monitor

Nick Scali’s company report showed different trends in the Australasian and UK businesses. Written orders, new showrooms and the later UK opening plans remain company-specific operating items for subsequent FY27 reports.

FAQs

Q: What was FY26 revenue?

A: AUD 516.7mn, up 4.3%.

Q: How did the UK loss change?

A: The UK net loss narrowed to AUD 4.8mn from AUD 11.2mn underlying in FY25.

Q: What was the FY26 dividend?

A: 78 cents per share.

Download Free Report – Explore 3 Stock Ideas & Industry Insights

Unlock 3 stock ideas and key industry insights in our free report. This information is general in nature and does not consider your personal objectives, financial situation, or needs. It is not financial advice.

All investments involve risk—consider independent advice before making any investment decisions.

View 3 Research Reports

Disclaimer:

This article (“Article”) has been prepared by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and its related bodies corporate who are authorised to provide general financial product advice. Kalkine.com.au and its associated pages are published by Kalkine.

Any information/advice provided in this article is general in nature and does not take into account your objectives, financial situation or needs. You should therefore consider whether the information is appropriate for your objectives, financial situation and needs before acting upon it.

There may be a Product Disclosure Statement, Information Memorandum or other offer document (“Offer Document”) for the securities or other financial products referred to in Kalkine articles. You should obtain a copy of the Offer Document and consider it before making any decision about whether to acquire the security or financial product.

Kalkine strongly recommends that you seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) before acting on any advice/information in this Article or on the Kalkine website. Not all investments are appropriate for all people.

The information in this Article and on Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of the information contained in its articles (including this Article), newsletters and websites. All information represents our views at the date of publication and may change without notice.

The information in this Article does not constitute an offer to sell securities or other financial products or a solicitation of an offer to buy securities or other financial products.

Kalkine does not issue, sell or deal in any financial products.

This Article may contain information on past performance of particular investments. Please note past performance is neither an indicator nor a guarantee of future performance.

To the extent permitted by law, and excluding any dishonesty or gross negligence by Kalkine, Kalkine disclaims and excludes all liability for any direct, indirect, implied, punitive, special, incidental or other consequential loss or damage arising from the use of or reliance on this Article, the Kalkine website and any information published on the Kalkine website without any warranties or representations by Kalkine to you. To the extent the law prohibits or limits this exclusion, Kalkine limits its liability to the resupply of services.

Please also read our Terms & Conditions and Financial Services Guide for further information.

Employees and/or associates of Kalkine and its related entities may hold interests in the securities or other financial products covered in this Article or on the Kalkine website. Any such employees and associates are required to comply with certain safeguards, procedures and disclosures as required by law.

Some of the images/music that may be used in the Article are copyright to their respective owner(s). Kalkine does not claim ownership of any of the pictures displayed/music used in the Article unless stated otherwise. The images/music that may be used in the Article are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.