Australian furniture group Nick Scali has reported a decline in full year sales as well as providing an update on its UK progress since the acquisition of Fabb Furniture.
According to its latest results for the year ended 30 June 2024, total group sales fell 7.8% to A$468.2m from A$507.7m in 2023.
EBITDA resulted at A$175m, down 11.2% from A$197.1m, while net profit stood at A$80.6m, down 20.3% from A$101.1m.
As for the UK, revenues amounted to A$8.3m (£4.2m) from 8 May 2024 when the group completed its acquisition of Anglia Home Furnishings Limited (AHFL), trading as Fabb Furniture, operating across 20 stores. (Read more)
Nick Scali added that Group written sales orders for the year were A$454.2m and included Fabb Furniture UK written sales orders of A$6.8m (£3.5m) (across 7.5 weeks).
The UK acquisition added A$3.3m to group operating expenses in second half of its full year.
Since the acquisition, the company shared an update on its progress in the last three months, which includes the appointment of Rodney Orrock, previously Chief Executive Officer of Best & Less, to lead the UK growth strategy transformation, based full time in the UK.
Store refurbishments are currently ongoing, with London region stores the first to be implemented, while Nick Scali products have been adapted to UK compliance and will begin arriving into UK showrooms in September, starting with its first sofa and dining range.
The company is also evaluating an alternative distribution centre and revealed that Nick Scali (UK) online is planned to launch with sofa and dining ranges in FY25.
Looking ahead for the UK specifically, the group added: “Written sales orders are affected by a combination of tough market conditions, long lead times due to supply chain disruptions, and the commencement of store refurbishments.
“Trading is expected to deteriorate further in the first half of FY25 as disruption increases due to store refurbishments and change in the product range.”
