Nick Scali just posted a record profit and its shares are rallying

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Shares in Nick Scali jumped 8% to $4.45 after the furniture retailer reported a record profit of $14.1 million for the half year to December 2015.

The 41% increase was driven by a 32% rise in sales revenue to $102.5 million. Same store sales growth was 11.6%.

January, traditionally the company’s strongest trading month, saw a 24% growth in sales. And the company expects continued sales growth for the second half of the 2016 financial year.

Net profit after tax for the full year is expected to be in the range of $22 million to $24 million.

Managing director Anthony Scali says margins are holding at 60% despite the weaker Australian dollar against the US dollar.

“We have opened nine new stores during the 2015 calendar year which all performed in line with expectation and positively influenced the overall result,” he says.

A fully franked interim dividend of 9 cents a share was declared, up from 7 cents.

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