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Investing.com-- Shares of Nick Scali Ltd (ASX:NCK) rose sharply to a record high on Friday after the Australian furniture company’s half-year earnings came in better than the company’s guidance.
Nick Scali jumped as much as 15% to a record high of A$18.72.
The company’s revenue rose 10.8% to A$251.1 million in the six months to December 31. But its profit attributable sank 30.2% to A$30 million.
Nick Scali also trimmed its interim dividend to 30 cents from 35 cents.
Still, the company’s net profit from its Australian operations was A$36 million, higher than its guidance of A$30-33 million.
Its losses from its UK operations- at A$2.8 million- was also smaller than the $3.3 million to $3.8 million loss forecast by the company.
Nick Scali logged some strength in its online business, as retail sales in its core Australian operations still remained relatively stable.
Sales were also seen picking up marginally in January, while the company postponed the opening of any more Australian stores until at least 2026- presenting a better outlook for near-term costs.
But they company also forecast an increase in UK operating losses, as it undergoes a major rebranding in its regional operations.