Nick Scali shares are on a tear

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Furniture sales are defying the retail downturn with Nick Scali posting a 44.7% rise in half year profit to $20.5 million.

A short time ago, its shares were up almost 12% to $7.20.

The profit growth was driven by a 15.5% increase in sales revenue to $118.4 million. Same store sales growth was 10.1%.

“Our overall performance has been underpinned by the current favourable market conditions, our continued store rollout program and economies of scale,” says managing director Anthony Scali.

“The store rollout to strategically selected locations will continue to be a major element of our strategy.”

The company declared a fully franked interim dividend of 14 cents a share, up from 9 cents in the same period last year.

Nick Scali expects market conditions for the second half of the 2017 financial year to remain favourable.

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