Nick Scali FY25 Revenue Hits $495m with ANZ Sales Orders Up 7.3%

Strong ANZ Performance Anchors Group Results

Nick Scali Limited closed FY25 with an underlying profit after tax of $62 million, reflecting resilience in its core Australian and New Zealand markets. The ANZ segment delivered a robust $73.2 million profit, supported by a 7.3% increase in second-half written sales orders and a 21.8% surge in online sales. Despite a slight 1.4% dip in revenue compared to FY24, the ANZ gross margin remained healthy at 65%, underscoring operational efficiency and steady demand.

UK Operations Struggle Through Transition

Conversely, the UK business posted an underlying loss of $11.2 million, weighed down by ongoing store refurbishments and the phase-out of the legacy Fabb Furniture brand. The transition to the Nick Scali brand is underway, with 12 stores rebranded and a notable gross margin improvement to 51.8% in the second half, up from 41% pre-acquisition. However, sales disruptions from store closures and clearance activities have hampered revenue growth, which stood at $42 million for the year.

Operational and Financial Highlights

The group’s total revenue rose 5.8% to $495.3 million, buoyed by stronger second-half sales momentum and strategic investments in eCommerce enhancements. Operating expenses increased modestly, primarily due to employment costs and UK restructuring efforts. Cash reserves remain strong at $101 million, with net cash of $29.3 million, supporting a fully franked final dividend of 33 cents per share and a total FY25 dividend of 63 cents.

Strategic Outlook and Growth Prospects

Looking ahead, Nick Scali expects continued sales growth in the ANZ region, with July 2025 sales orders up 7.7% year-on-year and plans to open five new stores in FY26. The UK turnaround remains a work in progress, with losses anticipated to persist until refurbishments complete and sales per store improve. Management is focused on enhancing retail teams, marketing the Nick Scali brand, and optimizing the store footprint to achieve break-even revenue targets.

Balancing Growth and Transformation

Nick Scali’s FY25 results reflect a company balancing solid domestic performance with the complexities of international expansion and brand integration. The ANZ business provides a stable foundation, while the UK market presents both challenges and opportunities as the company invests in its long-term growth strategy.