- Furniture retailer Nick Scali has reported a drop 2% in revenue during the financial year ending June 30, 2020.
- The company also expects losses of between $9 million and $11 million due to its temporary store closures.
- Nick Scali plans to open a new store in New South Wales and New Zealand.
- Visit Business Insider Australia’s homepage for more stories.
Furniture retailer Nick Scali reported a 2% drop in sales revenue in its latest results announcement.
In its 2020 financial year results, Nick Scali revealed a 2% decline in sales revenue to $262.5 million, with a net profit after tax of $42.8 million.
It comes after the company temporarily shut all its stores in March amid the coronavirus pandemic, causing a “significant decline” in its sales toward the end March and start of April. Plus, the company estimates a loss of between $9 and $11 million because of the temporary store closures.
Nonetheless, Nick Scali has seen a jump in written orders – up 9% – and a 4% rise in same store sales orders. After its temporary store closures in Australia and New Zealand, its May and June sale orders even grew 72% year on year. With the rise in orders between May and July, the company forecasts sales revenue growth to “increase substantially” in the 2021 financial year compared to the same time last year.
During its store closures, Nick Scali launched an online store. All product categories saw more than $3 million in sales orders for the quarter.
“In recent months, the furniture industry has experienced unprecedented year on year growth as consumers reallocated their spending into the home given an inability to travel combined with an increased amount of time spent at home,” Managing Director Anthony Scali said in a statement.
Nick Scali is on the road to opening new stores in Australia and New Zealand. It currently has three stores in New Zealand, and is looking to open a fourth in Wairau Park in Auckland during the 2021 financial year. The company is also expecting to open a new store in Bennett’s Green, New South Wales.
“A number of new store opportunities are being cautiously considered with an emphasis on ensuring rents are sustainable in the long term,” Nick Scali said.
All up, there are 58 Nick Scali stores, and the company has a broader goal of opening between 80 and 85 stores.
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