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- Furniture retailer Nick Scali (NCK) saw a significant 242 per cent year-on-year growth in written sales orders for the month of April
- Sales were strongly impacted last year due to widespread store closures at the turn of COVID-19, but total written sales began to improve which resulted in a 52-per-cent growth for the first half of the 2021 financial year
- Due to the positive momentum, the company expects net profit after tax for FY21 to be between $78 million and $80 million — an 85 per cent to 90 per cent increase on FY20
- It also expects earnings before interest, tax, depreciation and amortisation for the FY21 to be around $120 million
- Nick Scali’s shares ended the day down 2.62 per cent with shares closing at $10.42
Nick Scali (NCK) saw a significant 242 per cent year-on-year growth in written sales orders for the month of April.
The furniture retailer recalls there being a major decline in sales in April 2020 due to the widespread store closures amid COVID-19.
But over the course of last year, total written sales began to improve, resulting in a growth of 52 per cent in the first half of the 2021 financial year.
Pleasingly, the consumer discretionary stock managed to maintain this positive trading momentum with total written sales orders increasing to 50 per cent in the March quarter. This includes a same store written sales order growth of 41 per cent.
On the back of these figures, Nick Scali expects earnings before interest, tax, depreciation and amortisation for the 2021 financial year to be around $120 million. It also expects net profit after tax (NPAT) for the same period to be in the range of $78 million and $80 million. This NPAT marks an 85 per cent to 90 per cent increase on the 2020 financial year.
Of course, the guidance remains subject to no further delays or adverse material impacts between now and the end of June.
Nick Scali’s shares ended the day down 2.62 per cent with shares closing at $10.42.
