Nick Scali insists there is ‘pathway to | Australian Markets

Nick Scali shares have surged to file highs after its boss insisted there was “a pathway to profitability” for the furnishings chain regardless of being weighed down by its British shops.

Kicking off reporting season for the retail sector on Friday, Nick Scali revealed a 5.8 per cent raise in income to $495.3 million for the 2025 financial yr, as revenue slumped 28.3 per cent to $57.7m, a end result attributed to its loss-making British shops.

The company acquired British furnishings chain Fabb early final yr and is within the course of of rebranding the 21 shops in its community beneath the Nick Scali model.

While it already warned gross sales on the British shops can be impacted amidst the refurbishments, the group revealed the extent of the losses had widened to $11.2m, from a loss of $1.4m a yr in the past.

It took a $33.9m hit to UK written gross sales orders “caused by stores closed for refurbishment for long periods and the continuous clearance of old Fabb product range being sold from showrooms and warehouse inventory”.

But Nick Scali chief govt Anthony Scali stated there was a “pathway to profitability” for the British shops and there was “contingent belief that the product is right for the UK”.

So far, 12 shops have been refurbished and rebranded, with the remaining anticipated to be accomplished during the primary half of the 2026 financial yr.

Mr Scali stated the rebranded shops have already delivered a 58 per cent gross revenue margin for May and June, in contrast with 42 per cent at acquisition.

Mr Scali stated based mostly on latest average gross sales per Nick Scali store in Britain, every store would need to raise gross sales by $10,000 a week, or an further 2.5 orders per week, to start contributing earnings to the group.