Nick Scali Limited Provides Financial Guidance for the First Quarter of Fiscal 2021
June 18, 2020 at 06:23 pm EDT
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Nick Scali Limited provided financial guidance for the first quarter of fiscal 2021. Given the nature of Nick Scali's business model and the significant increase in sales orders during May and June, the Company anticipates sales revenue for the first quarter to be approximately 30% up. This is expected to underwrite profit growth for the first half of fiscal 2021. The significant decline in sales orders during the second half of March and the first half of April when the showroom network was affected by closures, meant that approximately $9 million to $11 million of sales were unable to be recorded in the current financial year. However, due to the successful implementation of a range of cost reduction initiatives across marketing, employment and property, together with government assistance, profit for the second half will be up 15% to 20% on last year. Nick Scali has experienced a significant rebound in customer activity during May and the first half of June. 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.
Nick Scali Limited is a furniture retailer operating in Australia and New Zealand. The Company is engaged in the sourcing and retailing of household furniture and related accessories. Its sofas and armchairs collection include recliner sofa collections, leather sofa collections, fabric sofa collections, occasional armchairs, and others. Its living room collections include TV and entertainment units, coffee tables, side tables, console and hallway tables, and others. Its dining room collections include dining tables, dining chairs, and buffet tables and sideboards. Its bedroom collections include mattresses, bedframes, bedside tables, and dressers, among others. Its rugs and accessories collections include rugs and mirrors. It imports more than 5,000 containers of leather and fabric lounges as well as dining room and occasional furniture. The Company has stores located in New South Wales, Queensland, Victoria, Tasmania, South Australia, Western Australia, and others.