Nick Scali Limited (ASX:NCK) on Thursday reported a full year profit for the 12 months ending 30th June 2018 of $42.1 million, up 2.8 per cent on the same period a year earlier.
On a per-share basis, the company said it had a profit of 52 cents. This compares with a profit of 50.6 cents per share in the corresponding period last year. The company declared a full year dividend for the period of 45 cents per share, an increase of 5 per cent.
Managing Director, Mr Anthony Scali, said “The result was satisfactory given that furniture purchases are highly discretionary and have a strong correlation with housing sales. In the past twelve months, Australia has experienced a significant slowdown in dwelling sales and the consumer has seen the value of their homes fall with the negative wealth affect resulting in a very cautious consumer.”
The company said same store sales were flat for most of the year, with some decline in the fourth quarter. This trend has continued into the FY20 year and July same store sales growth remained negative.
It went on to say that as a furniture retailer, Nick Scali is very dependent on housing sales and renovations which have been in decline, and trading conditions will likely only materially improve when there is an uplift in housing sales and renovations
In trading on Thursday, Nick Scali Limited shares have fallen 5 cents or 0.8 per cent to $6.09.
The Nick Scali Limited share price has risen 19 per cent since the beginning of the year, while the S&P/ASX 200 Index has gained 17 per cent.