Furniture retailer Nick Scali has reported its results for the half year ended 31st December 2025, reporting a statutory net loss after tax in the UK in line with forecasts at A$5.6m (£2.9m), reflecting lengthy store closures during the half associated with its refurbishment and rebranding programme (the application of accounting standard AASB16 increased the UK loss by A$661k, but had no cash impact on the business).
Anthony Scali, executive chair and CEO, says: “The first half delivered solid sales and profit growth in Australia and New Zealand (ANZ) with good progress made in the UK as the completion of store refurbishments and rebranding contributed to improvement in written sales orders. Statutory net profit after tax for the group was up 36% on the prior year, reflecting 13% growth in sales revenue in ANZ and the improvement in gross profit margin in both the UK and ANZ.
"We continue to grow our store network across ANZ with six new stores to be opened in FY26, and several new store opportunities currently under negotiation in the
UK.“
UK written sales orders during the half amounted to A$21.7m (£112.6m). While this was a 12.8% increase on sales orders YoY, the retailer says "comparatives for the period are not representative of trading due to numerous store closures for lengthy periods for store refurbishments".
The revenue achieved (A$17.6m, £9.1m) was down YoY (A$28.6m, £14.8m in H1 FY25), also impacted by store closures during the half. UK gross margin was 59.2%, significantly above the comparator period's gross margin of 45.1%.
Operating expenses stood at A$10.8m (£5.6m). Excluding currency movement, these were in line with H1 FY25, with savings in employment and property costs offset by increased marketing spend, says Nick Scali.
The retailer adds: "A number of new stores are currently in negotiations, with a strong focus on growing the store network. With the majority of the store refurbishment programme now complete, we have seen improvement in written sales compared to the prior year. Total January written sales were A$6.7m (£3.5m), and the four Nick Scali-branded stores that were trading in January FY25 achieved LFL sales growth of 32% in January FY26."
A total of 20 UK stores were added to Nick Scali's UK store network with its acquisition of Fabb Furniture in 2024.
Photo courtesy Nick Scali
