Furniture retailer Nick Scali has delivered an upbeat profit guidance, stating it is expecting its net first-half profit to be around a third higher compared to the previous corresponding period.
The retailer announced that based on strong year to date sales and continued cost containment, the company is expecting a 30 per cent to 35 per cent increase in net profit after tax for the first half year of 2017 over the previous corresponding period.
In August, Nick Scali announced a jump in full-year profit of 53.1 per cent to $26.15 million through a combination of improved same store sales and new openings.
Revenue for the 12 months to June 30 rose 30.4 per cent to $203 million after the full-year benefit of seven stores opened midway through the previous financial period, and a small contribution from two new stores in the reporting period.
The company reported its gross margins were slightly higher than last year despite the year on year decline of the Australian dollar.
At 12pm (AEDT), Nick Scali shares had advanced 10.5 per cent to $6.30, before tapering off to $6.16 at yesterday’s close.
Access exclusive analysis, locked news and reports with Inside Retail Weekly. Subscribe today and get our premium print publication delivered to your door every week.
