Nick Scali's (ASX:NCK) sales orders on the rise expects second half profit lift of 15-20%

Company News

by Anna Napoli

Furniture retailer Nick Scali (ASX:NCK) expects second half profits to be up between 15 per cent to 20 per cent on last year due to cost cutting and government assistance.

The company says it has experienced a significant rebound in customer activity during May and the first half of June…. And given the strong trading, the company expects sales orders for the months of May and June to be up 54% on prior corresponding period, driven by the easing of government restrictions and a reallocation of discretionary consumer spending toward furnishings and homewares.

The furniture retailer expects full year underlying net profit after tax of between $39 million and $40 million, with revenue expected to be between $260 million and $263 million.

The upbeat outlook for customer activity underpinned the company's forecast for sales revenue in the first quarter of the 2021 financial year to be up 30 per cent.

Nick Scali shares are trading 20.87 per cent higher at $6.95.
 

Anna Napoli

Finance News Network
Anna joined FNN February 2018 and also works with Channel 7 as a freelance producer. Anna has also worked as a lawyer and lecturer. She has also presented news updates for interstate news with Southern Cross Austereo.