Latest news with #AnthonyScali
News.com.au
5 days ago
- Business
- News.com.au
Key sectors split on down day for ASX
A mixed bag has capped the share market's first weekly gain in three weeks, in the midst of reporting season with an expected interest rate cut just days away. The S&P/ASX200 closed Friday with a loss of 24.3 points or 0.28 per cent at 8807.1. Sell offs in financials and healthcare outweighed gains in mining stocks, with six of 11 sectors in negative territory. The All Ordinaries also slipped 0.28 per cent, down 25 points to 9,076.6 while the Small Ords was flat. Daily returns were dominated by earnings results. QBE shares tanked 8.8 per cent (to $21.39) despite the company reporting a 20 per cent jump in half-year profit. Afterpay owner Block rose 9.1 per cent (at $127.09) as second quarter results showed consumers were blowing cobwebs off their wallets. Furniture retailer Nick Scali lifted 6.9 per cent (to $20.49) as its Australian and New Zealand orders over the second-half rose 7 per cent. Investors made themselves comfy despite a near 30 per cent slide in profits. 'We're getting better deals … and we are passing that through to the consumer for better prices and that is probably helping us,' chief executive Anthony Scali told investors. 'I think the consumer is a bit more confident.' Other big gainers include finance tech company Iress (up 12.2 per cent at $9.40), Pilbara Minerals (up 9 per cent at $1.93) and AMP (up 7.1 per cent at $1.87). At the other end, GQG Partners was deep in red territory. GQG's share price fell 14.6 per cent (to $1.72), as a funds under management update revealed an exodus. Investors ditched game company Light and Wonder, as the Las Vegas-headquartered firm announced plans to delist from the Nasdaq later this year. Aussie-listed stocks fell 11.2 per cent to $118.75. The RBA is expected to cut the cash rate on Tuesday, and will take heed from London in doing so. The Bank of England cut its main interest rate Thursday by a quarter point to 4 per cent, to spite a lagging economy. In international news, the UK, Switzerland and the US have found themselves in a tussle after a report Donald Trump had imposed tariffs on imports of 1kg gold bars. Independent market analyst Stephen Innes said the US administration was taking a three-pronged approach. 'Weaken Switzerland's refining monopoly. Force London's bullion banks into a defensive posture. Supercharge the fiscal optics by goosing gold's domestic valuation,' he said. 'The optics are unmistakeable. At a time when central banks are hoarding gold to diversify away from dollar risk, Washington is slapping toll booths on the global metal highway. 'Switzerland, the middleman in this high-value supply chain, just became collateral damage.' The news sent gold futures climbing to a record high on Friday, even after a stellar week for the precious metal. The S&P/ASX All Ordinaries Gold benchmark is up 11.5 per cent for the week, including a 2 per cent sweetener on Friday.
West Australian
5 days ago
- Business
- West Australian
Nick Scali insists there is ‘pathway to profitability' for British stores as it posts profit slump
Nick Scali shares have surged to record highs after its boss insisted there was 'a pathway to profitability' for the furniture chain despite being weighed down by its British stores. Kicking off reporting season for the retail sector on Friday, Nick Scali revealed a 5.8 per cent lift in revenue to $495.3 million for the 2025 financial year, as profit slumped 28.3 per cent to $57.7m, a result attributed to its loss-making British stores. The company acquired British furniture chain Fabb early last year and is in the process of rebranding the 21 stores in its network under the Nick Scali brand. While it already warned sales at the British stores would be impacted amidst the refurbishments, the group revealed the extent of the losses had widened to $11.2m, from a loss of $1.4m a year ago. It took a $33.9m hit to UK written sales orders 'caused by stores closed for refurbishment for long periods and the continuous clearance of old Fabb product range being sold from showrooms and warehouse inventory'. But Nick Scali chief executive Anthony Scali said there was a 'pathway to profitability' for the British stores and there was 'contingent belief that the product is right for the UK'. So far, 12 stores have been refurbished and rebranded, with the remaining expected to be completed during the first half of the 2026 financial year. Mr Scali said the rebranded stores have already delivered a 58 per cent gross profit margin for May and June, compared with 42 per cent at acquisition. Mr Scali said based on recent average sales per Nick Scali store in Britain, each store would need to lift sales by $10,000 a week, or an additional 2.5 orders per week, to begin contributing profits to the group. Despite the near-30 per cent profit slump, investors chose to focus on Nick Scali's potential for growth, sending shares 8 per cent higher to $20.70 just after 1pm. 'I'm confident with the right sales team, we're going to get the uplift in sales,' Mr Scali told investors on a call. In Australia and New Zealand — which accounts for the majority of Nick Scali's sales with over 60 stores — sales fell 1.4 per cent to $453.5m for 2025, while net profit slumped 12.3 per cent. Nick Scali said sales in Australia and New Zealand grew by 7.7 per cent in July. It expects sales revenue for the first quarter of the 2026 financial year to be up on the prior year. MLC Asset Management senior portfolio manager Anthony Golowenko said Nick Scali appeared to have a good growth trajectory and the company was making steady progress in building its business in the UK. 'This is setting the scene for a solid (2026 financial year), more favourable customer demographics, and likely rate cuts adding to consumer confidence,' he said. Nick Scali declared a final dividend of 33¢ a share.
