- Shares in furniture retailer Nick Scali (NCK) were on the rise yesterday, after the company revealed a surprise bump in its profit guidance
- For the last six months of 2020, Nick Scali is expecting to pull in $40.5 million in unaudited net profit after tax, which is up around 100 per cent on the underlying profit in last year’s same period
- The company attributed the strong performance to “better than previously anticipated container availability” during November and December
- Due to the strong performance, total written sales over the six-month period exceeded delivered sales by around $20 million, placing the company’s order book at record levels
- Nick Scali closed 6.27 per cent up for C$10.51 per share
Shares in furniture retailer Nick Scali (NCK) were on the rise yesterday, after the company revealed a surprise bump in its profit guidance.
For the last six months of 2020, Nick Scali is expecting to pull in $40.5 million in unaudited net profit after tax, which is up around 100 per cent on the underlying profit in last year’s same period.
The company attributed the strong performance to “better than previously anticipated container availability during the months of November and December”, which ultimately led to higher delivery volumes.
Meanwhile, total written sales in the first quarter of 2021 financial year jumped by 45 per cent. The strong sales followed through into the second quarter, which in turn grew by 58 per cent on the previous corresponding period.
The improving second quarter figures were put down to the reopening of its Melbourne metropolitan stores, as well as a sales boom related to its Black November marketing campaign.
All this culminated in the total written sales over the six-month period exceeding its delivered sales by around $20 million, placing the company’s order book at record levels. The excess sales volume is expected to subsequently boost sales revenue in the second half of this financial year.
Adding to the expected sales boost in the coming months, the company recently opened two new stores, one in New Zealand and another in New South Wales. According to the company, early indicators suggest the stores are already performing strongly.
Nick Scali closed 6.27 per cent up for C$10.51 per share.