Nick Scali sales recover, shares soar

Nick Scali shares have soared more than 20 per cent after the furniture retailer said it would bring forward a dividend it deferred at the height of the pandemic.

Nick Scali decided on March 23 to defer the interim dividend until October, but now says it will make the 25¢-per-share payout on June 29.

Nick Scali shares were up 21.6 per cent to $6.99 at 9am.

The company said on Friday that the temporary closure of its retail stores during the pandemic cost it approximately $9 million to $11 million in lost sales, but cost-reduction initiatives including layoffs and government assistance means second-half profit will still be up 15 to 20 per cent on last year.

The company expects to make $39 million to $40 million in underlying net profit after tax in FY19, compared to $42.1 million in FY19.

Revenue is forecast to be between $260 million to $263 million, compared to $268 million last fiscal year.

Nick Scali’s showrooms reopened by the end of April and the company said that in May and the first half of June it has “experienced a significant rebound in customer activity".

The retailer said it expects sales for May and June to be up 54 per cent from a year ago.

It also said it anticipates sales revenue in the three months to September 30 to be up 30 per cent.

AAP