Why Did Nick Scali (ASX:NCK) Report 22% Higher FY26 Profit While ANZ Written Orders Slowed in the Second Half?

Sonal Goyal

21 October 2026 09:51 PM AEDT

Why Did Nick Scali (ASX:NCK) Report 22% Higher FY26 Profit While ANZ Written Orders Slowed in the Second Half?

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Key highlights

Nick Scali reported FY26 group NPAT up 22% and Revenue up 4%, with gross Margin improving by 210 basis points, in its 7 August 2026 release.
ANZ NPAT was $80.5 million and ANZ revenue was $476.7 million, up 5.1%.
The UK Business recorded a net loss of $4.8 million, with a $0.8 million profit in the second half.

Shares in Nick Scali Ltd (ASX:NCK) ended 21 October 2026 at $14.21, down 1.39%. The S&P/ASX 200 Consumer Discretionary [XDJ] stood at 3,741.90, a rise of 0.34% (12.50 points), while the S&P/ASX 200 [XJO] was at 8,831.30, a rise of 0.16%, and the All Ordinaries at 8,956.60, a rise of 0.14%, at 5:00 pm GMT+11. Nick Scali is a furniture retailer with showrooms in Australia, New Zealand and the United Kingdom.

What Nick Scali does

Nick Scali Limited sells furniture through Nick Scali and Plush showrooms across Australia and New Zealand, and through showrooms in the United Kingdom following its Acquisition of Fabb Furniture. Customers place written orders that convert to revenue on delivery.

FY26 group results

In an announcement dated 7 August 2026, Nick Scali reported group net profit after tax up 22% and revenue up 4% in a subdued retail environment. Gross margin improved by 210 basis points through pricing, sourcing and inventory management.

ANZ and UK performance

ANZ Group NPAT was $80.5 million, up 10.0% on FY25 underlying profit, with revenue of $476.7 million, up 5.1%, and a gross margin of 66.0%, up 100 basis points. ANZ written sales orders rose 2.7% over the year, with a softer second half cycling double-digit growth in Q4 FY25.

In the UK, the net loss after tax was $4.8 million, including a $5.6 million loss in 1H and a $0.8 million profit in 2H. UK written orders were $45.0 million, up 31.4%, and like-for-like orders in 2H were up 19.0%. UK revenue was $40.0 million, $1.8 million below FY25 because of store closures for refurbishment, while UK gross margin improved to 60.3% from 47.1%.

Sector context

Consumer discretionary companies depend on household spending, travel, leisure and housing activity, and they are tracked through the S&P/ASX 200 Consumer Discretionary index, which closed at 3,741.90, up 0.34%, on 21 October 2026 alongside a 0.16% rise in the S&P/ASX 200 to 8,831.30. Furniture retailers depend on housing turnover, household confidence and interest rates, and the release refers to a subdued retail environment.

Risks and uncertainties

ANZ written orders slowed in the second half, UK operations remain in a net loss for the year, and revenue timing depends on delivery of written orders. Housing activity, consumer demand, freight costs, currency and the UK refurbishment program can affect outcomes.

Catalysts to watch

Items to watch include ANZ written orders, UK profitability, gross margin trends and the half-year result.

Summing up

Nick Scali’s 7 August 2026 release recorded higher profit and margins, slower ANZ order growth and a UK return to second-half profit. The next result will show order trends.

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