Key Highlights

  • Nick Scali shares were down 14.71% at $12.12 during the 22 October 2026 session, while the S&P/ASX 200 was down 0.44%.
  • In its 21 October 2026 trading update, the company guided to 1H FY27 underlying net profit after tax of $28 million to $32 million.
  • Written sales orders in Australia and New Zealand were 15% below the prior period, while UK orders were 29% higher.

During the Trading session on 22 October 2026, shares in Nick Scali Limited (ASX:NCK) were down 14.71% at $12.12, compared with the S&P/ASX 200, which stood at 8,792.20, down 0.44%, and the All Ordinaries, which stood at 8,916.20, down 0.45%. Nick Scali operates a store network across Australia, New Zealand and the United Kingdom. On 21 October 2026 the company issued a trading update and first-half FY27 profit guidance, covering the first quarter of the financial year, a cyber security incident and an expected range for underlying net profit after tax.

About the Company

Nick Scali Limited is listed on the Australian Securities Exchange under the code NCK and has the Australian Business Number 82 000 403 896. Its head office is at Level 7, Triniti 2, 39 Delhi Road, North Ryde, New South Wales. The announcement of 21 October 2026 named Anthony Scali as Executive Chair and Chief Executive Officer and Keith Toms as Chief Financial Officer and Company Secretary.

Business Overview

The announcement covers two regions, Australia and New Zealand and the United Kingdom, in both of which the company reports written sales orders and expands through a network of stores. Two new ANZ stores opened in July, and a further two are expected to open in late December. In the UK, one new store is expected to open in late December. The company said its priorities include maintaining gross margins, disciplined cost management, expanding the store network and continuing to improve the performance of the UK business.

Trading Conditions Reported in Australia and New Zealand

In its announcement dated 21 October 2026, Nick Scali said trading conditions in Australia and New Zealand remained challenging in the first quarter. Written sales orders were 15% below the prior corresponding period and store traffic was approximately 10% lower. That compares with written sales order growth of 11% in the first quarter of FY26.

The company also referred to a cyber security incident in August that left its ERP systems unavailable for approximately three weeks. Stores continued to trade during that period, with sales orders processed manually. ANZ Revenue for the first half is expected to be approximately 11% to 14% below the prior corresponding period.

United Kingdom Update and Profit Guidance

For the United Kingdom, the 21 October 2026 announcement reported that written sales orders for the first quarter were 29% above the prior corresponding period, with like-for-like written sales orders up 14%. The company said the gap between total and like-for-like growth reflects, in part, stores that were temporarily out of operation for refurbishment in the prior corresponding period.

Based on trading to date and the current order bank, Nick Scali expects underlying Group net profit after tax for the six months ending 31 December 2026 to be in the range of $28 million to $32 million. Underlying Profit excludes approximately $980,000 of direct costs for consultants and legal advisers relating to the cyber security incident, which will be disclosed separately as non-underlying items in the financial results.

Related Sector Context

Furniture and homewares retailers are exposed to household spending, housing-related activity and consumer confidence, and indicators such as written orders and store traffic are commonly used to track demand. Order banks, which hold sales written but not yet delivered, link order activity to later reported revenue. The broader market was lower during the 22 October 2026 session, with the S&P/ASX 200 down 0.44% and the All Ordinaries down 0.45%, while Nick Scali's 14.71% decline was considerably larger than either benchmark.

Risks to Weigh In

The guidance is a range, and the company said it is based on trading to date and the current order bank, so outcomes for the second quarter and the remainder of the half remain to be reported. The announcement described ANZ trading conditions as challenging, with order and traffic declines. The cyber security incident carried direct costs of approximately $980,000 that will be disclosed as non-underlying. New store openings in Australia, New Zealand and the UK depend on the timing the company indicated, which is stated as expected rather than confirmed, and the announcement did not quantify any other effects of the incident.

Catalysts on Watch

The announcement pointed to several dated items. Two further ANZ stores and one UK store are expected to open in late December. The half-year to 31 December 2026 will be followed by financial results that include the separate disclosure of non-underlying items relating to the cyber security incident. The announcement did not give a results date.

Putting It Together

Nick Scali's shares were down 14.71% at $12.12 during the 22 October 2026 session, against a 0.44% decline in the S&P/ASX 200. The company's trading update of 21 October 2026 reported ANZ written sales orders 15% below the prior corresponding period, UK written sales orders 29% above it, and guidance for underlying first-half net profit after tax of $28 million to $32 million.