Nick Scali Shares Slide on ASX as Weak ANZ Trading Clouds Earnings Outlook

Highlights

• Shares fell 15.3% as investors assessed weaker ANZ trading and first-half profit expectations.
• UK quarterly written orders increased 29%, while ANZ orders declined 15%.
• Store expansion continues, with three additional openings expected across ANZ and the UK in December.

Shares Under Pressure

Nick Scali Limited (ASX: NCK) shares traded at a current market price (CMP) of AU$12.030 on 22 October 2026, recording a 15.3% decline. The fall followed yesterday’s trading update, which outlined weaker demand across Australia and New Zealand alongside improving UK operations. The regional contrast puts the company’s earnings delivery and expansion strategy in focus.

Yesterday’s Update Reveals ANZ Slowdown

In its announcement dated 21 October 2026, Nick Scali reported a 15% reduction in first-quarter ANZ written sales orders, compared to 11% growth in the corresponding FY26 quarter. Store traffic decreased approximately 10%.

Management expects first-half FY27 ANZ revenue to decline approximately 11%–14% compared to the corresponding period.

The retailer also detailed disruption from an August cybersecurity incident that made enterprise resource planning systems unavailable for approximately three weeks. Stores continued trading throughout the interruption, processing customer orders manually.

UK Growth Provides Support

UK first-quarter written sales orders rose 29%, including a 14% increase in like-for-like orders. The difference partly reflected stores temporarily closed for refurbishment during the comparative period.

Two ANZ stores opened in July. Another two ANZ locations and one UK store are expected to open in late December, extending the retailer’s network despite difficult domestic conditions.

Profit Guidance and Board Update

Nick Scali forecasts underlying group net profit after tax of AU$28 million–AU$32 million for the six months ending 31 December 2026.

This excludes approximately AU$980,000 in consulting and legal expenses linked to the cybersecurity incident, which will be disclosed separately as non-underlying costs. A separate filing confirmed Colette Garnsey OAM’s appointment on 19 October 2026, with nil direct or indirect securities interests disclosed.

Outlook

Near-term performance will depend on ANZ demand, order deliveries and continued UK improvement. Management remains focused on protecting gross margins, controlling expenditure and expanding its store network, supported by a balance sheet it describes as strong. However, UK growth and planned openings must be assessed alongside the expected ANZ revenue contraction.

Note- All data presented is based on information available at the time of writing.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au