Profit upgrade sends Nick Scali to all-time highs

Nick Scali has jumped 6% for the second day in a row after it issued a profit guidance update for the first half of FY21. The surge has sent the company's share price to an all-time high of $11.16.

The furniture retailer expects Unaudited Net Profit After Tax for the six months to 31 December 2020 to be $40.5 million, up approximately 100% on the underlying profit for the prior corresponding period, following better than previously anticipated container availability during the months of November and December leading to increased delivery volumes.

Total written sales orders for the first quarter grew by 45%. This compares to second-quarter growth of 58%, which was driven by the reopening of the Melbourne metropolitan stores as well as a successful Black November campaign across both the online and in-store channels.

During the month of November, the Company opened new stores at Wairau Park in Auckland, New Zealand and Bennetts Green in NSW which have both performed strongly and are expected to contribute to profit in H2 FY21 as written sales orders convert to revenue.

Despite the entire store network being reopened at the end of October, sales made through digital channels continued to grow during Q2 FY21.