Nick Scali delivers record $75.7m FY26 profit as UK turnaround gathers pace
In its FY26 results presentation released on 7 August 2026, Nick Scali Limited reported a Group net profit after tax of $75.7m, up 22% on FY25 underlying NPAT and up 31% on statutory NPAT. The furniture retailer delivered the result on Group revenue of $516.7m, an increase of 4.3%.
Management outlined a full year defined by margin expansion, with gross profit margin reaching 65.6%, up 210 basis points on the prior year. The company ended the period with cash on hand of $106.6m and declared a final dividend of 39 cents per share, fully franked.
When big ASX news breaks, our subscribers know first
FY26 financial performance at a glance
The results presentation split Group performance across the Australia and New Zealand (ANZ) operations and the United Kingdom (UK) business. The table below presents the full-year snapshot alongside the FY25 Group comparison.
| Metric ($m) | FY26 ANZ | FY26 UK | FY26 Group | FY25 Group |
|---|---|---|---|---|
| Sales Revenue | 476.7 | 40.0 | 516.7 | 495.3 |
| Gross Profit | 314.8 | 24.1 | 338.9 | 314.6 |
| Gross Margin % | 66.0% | 60.3% | 65.6% | 63.5% |
| Profit/(Loss) after tax | 80.5 | (4.8) | 75.7 | 62.0 |
| EBITDA | 175.6 | 5.1 | 180.7 | 159.1 |
| EBIT | 127.7 | (3.0) | 124.7 | 105.7 |
The FY25 comparison figures are underlying, excluding $2.4m of UK restructuring and integration costs and $2.8m of ANZ costs resulting from the business failure of a freight forwarder. The ANZ division recorded a net profit after tax of $80.5m, up 10% on FY25 underlying NPAT.
Key drivers behind the ANZ performance included:
-
ANZ gross margin of 66.0%, up from 65.0% in FY25.
-
Operating expenses rose by $5m, attributable to employment bonuses and additional advertising in the first half.
-
Second-half operating expenses were flat, including $600k in start-up costs for four new stores.
The UK turnaround: rebranding pays off
The UK business remains central to the offshore growth story, and FY26 marked a clear inflection point. While the division recorded a net loss after tax of $4.8m for the full year, the second half returned to profit with a 2H statutory profit of $0.8m.
UK written sales orders reached $45.0m for FY26, up 31.4%, with second-half orders of $23.2m, up 55.5%. Nick Scali branded stores traded on a like-for-like basis up 19% in the second half. Gross margin improved to 60.3% for FY26 from 47.1% in FY25, with the second-half margin reaching 61.2%.
By December 2025, 16 stores had been refurbished and rebranded as Nick Scali. UK revenue was $40.0m, down 4.3%, reflecting interrupted trading in the first half as stores closed for the rebranding programme. Written sales orders exceeded revenue by approximately $5m, pointing to forward demand yet to convert.
The trajectory suggests the UK has moved from a loss-making integration phase toward a positive second-half footing.
Understanding written sales orders — why they matter for a furniture retailer
Like-for-like (LFL) figures, per the company’s footnote, capture written sales orders from online and from showrooms open for the whole of both reporting periods. Group written sales orders grew 4.7% to $517.5m, signalling the revenue pipeline ahead. The roughly $5m gap between UK orders and revenue reflects demand that had not yet been converted into recognised sales.
Balance sheet strength and disciplined capital management
The company closed FY26 with cash and bank deposits of $106.6m and net cash after borrowings of $34.9m, up $5.6m on the prior year. Operating cash flow of $117.9m was generated during the year, compared with $89.6m in FY25.
Property debt is secured at less than 22% LVR. The property portfolio carries a book value of $131.0m, against an independent valuation of $208.2m, indicating asset value above the carrying figure on the balance sheet.
Property valuation uplift
The company’s property portfolio holds an independent valuation of $208.2m, compared with a book value of $131.0m, alongside a net cash position of $34.9m.
Dividends returned $61.6m to shareholders during the period, an uplift of $7.8m on FY25. The UK operating cash outflow improved to -$2.1m from -$10.2m, with the second half close to breakeven at -$0.2m, reinforcing the turnaround narrative.
Store network expansion: the growth runway
Management framed the store rollout as the structural growth story across both regions. The table below sets out the network movement and long-term opportunity.
| Brand/Region | June 25 | July 26 | Long-term opportunity |
|---|---|---|---|
| Nick Scali ANZ | 65 | 66 | 86 |
| Plush ANZ | 45 | 48 | 90–100 |
| ANZ Total | 110 | 114 | 180–200 |
| UK | 20 | 18 | 60–70 |
| Total | 130 | 132 | 240–270 |
Recent and planned openings included:
-
Plush: Bendigo, Vic (Nov 25), Tuggerah, NSW (Mar 26) and Cannington, WA (May 26).
-
Nick Scali: Ballarat, Vic (Apr 26), plus Bendigo, Vic and Bunbury, WA (Jul 26).
-
UK: Lincoln closed Oct 25 and Nottingham closed Apr 26, both shared concessionary stores exited under the long-term network strategy, with a new store expected in October 26.
The current network of 132 stores against a long-term opportunity of 240–270 frames the runway for continued rollout.
FY27 outlook and investment case
Management provided an early FY27 trading update. In the first five weeks of FY27, ANZ written sales orders were flat on the prior corresponding period, cycling off high single-digit growth in the prior year. UK written sales orders rose 35% over the same window, continuing the momentum from the second half.
The Group opened four new ANZ stores during FY26 and a further two in July, which are expected to contribute positively to FY27 earnings. A further 4 ANZ stores are expected to open during FY27. In the UK, a new store is expected to open in October, with further locations under negotiation.
The FY26 result combines margin expansion, a strong cash and net cash position, growing dividends, and a maturing UK turnaround. Together, these elements underpin the company’s multi-region growth strategy.
Don’t Miss the Next Consumer Discretionary Winner
Big News Blast delivers FREE breaking ASX news straight to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already staying ahead of the market. Click the “Free Alerts” button at StockWire X to start receiving alerts the moment consumer sector news breaks.