Nick Scali Raises FY26 H1 Revenue Growth to 12%, Profit to $39m
Nick Scali Limited has upgraded its first half FY26 revenue and profit guidance, citing stronger than expected sales growth in Australia and New Zealand.
- First half FY26 revenue growth revised up to 10%-12% in Australia and New Zealand
- Previous revenue guidance was 7%-9%
- Statutory net profit after tax guidance increased to $37m-$39m
- Prior profit guidance was $33m-$35m
- Strong trading performance signals robust demand in key markets
Stronger Sales Momentum in Australia and New Zealand
Nick Scali Limited, a leading furniture retailer in Australia and New Zealand, has delivered an encouraging trading update for the first half of fiscal year 2026. The company has raised its revenue growth expectations for these key markets to between 10% and 12%, surpassing its earlier forecast of 7% to 9%. This upward revision reflects a stronger consumer appetite for home furnishings amid a competitive retail landscape.
Profit Guidance Upgraded Amid Revenue Growth
Following the improved revenue outlook, Nick Scali has also increased its statutory net profit after tax guidance to a range of $37 million to $39 million, up from the previous estimate of $33 million to $35 million. This suggests the company is not only growing top-line sales but is also managing costs and margins effectively, although specific details on expenses were not disclosed in the update.
Implications for Investors and Market Position
The revised guidance signals robust demand in the furniture retail sector, particularly in Australia and New Zealand, where Nick Scali operates extensively. Investors will likely view this positively, as it indicates resilience and growth potential despite broader economic uncertainties. However, the lack of detailed margin or cost breakdowns leaves some questions about the sustainability of this profit growth.
Looking Ahead
As the company approaches the release of its full half-year results, market watchers will be keen to see how these revenue gains translate into operational performance and whether the momentum can be sustained into the second half of FY26. The update also sets a higher bar for competitors in the furniture retail space, underscoring Nick Scali's strong market positioning.
Bottom Line?
Nick Scali’s upgraded guidance highlights strong demand but leaves investors eager for detailed margin insights.
Questions in the middle?
- What factors are driving the stronger than expected revenue growth in Australia and New Zealand?
- How sustainable are the improved profit margins without detailed cost disclosures?
- Will this momentum continue into the second half of FY26 amid economic uncertainties?
