Libcombe. Nick Scali profit down

Nick Scali, furniture importer and retailer, at Lidcombe, posted a 5.7 per cent fall in net profit as trading conditions deteriorated during the last half. Same-store sales were down 2.7 per cent but margins were maintained despite aggressive discounting The peak selling month of January had been very strong, said MD, Anthony Scali.

Lidcombe. Nick Scali's sales downturn

Furniture retailer Nick Scali Limited, at Lidcombe, announced a net profit after tax of $2.5 million for the half year ended December 131. The result was achieved in very difficult trading conditions, which saw a decline in sales revenue of 8 per cent to $39.9 million and pressure on gross margin as a result of the rapid depreciation of the Australian dollar in the period. The company said sales in January, traditionally the industry’s biggest trading month were down 2 per cent overall and 6.5 percent on a comparative store basis, compared with last year. Forecasting trading results for the full 2008/09 year ”remains difficult”.