Nick Scali’s net profit plunges amid Fabb Furniture acquisition

Furniture retailer Nick Scali’s net profit plunged 20.3 per cent year over year to $80.6 million in the 12 months ended June 30.

Revenue fell 7.8 per cent to $468.2 million, which Nick Scali said reflects the previous year benefiting from increased deliveries with lead times returning to pre-Covid levels.

The group’s written sales orders totalled $454.2 million, which includes Fabb Furniture UK’s written sales orders of $6.8 million. Online written sales orders grew 17.8 per cent to $34.8 million.

Nick Scali completed the acquisition of Fabb Furniture last May 8, which added $3.3 million to group operating expenses in the fiscal second half.

The acquisition saw 20 Fabb Furniture stores added to Nick Scali’s network.

Meanwhile, Nick Scali expects to open two namesake stores and three to five Plush stores in Australia and New Zealand in the current fiscal year.

This follows the addition of three Plush stores to the company’s network while closing two Plush showrooms in the last fiscal year.

However, the group expects UK written sales orders to be down due to tougher market conditions, supply chain disruptions prolonging lead times, and ongoing store refurbishments.

The company appointed former Best & Less CEO Rodney Orrock to lead the UK growth strategy transformation.

Nick Scali’s products are set to arrive in UK showrooms in September.

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