Nick Scali sitting comfortably

On Thursday, furniture retailer Nick Scali (ASX: NCK) reported its full year results. Net profit came in at $26.2 million, which exceeded market expectations of $25.2 million. As a comparison, Nick Scali upgraded their profit guidance in May this year to $24-26 million from $22-24 million in February. Management cited 11.1% like for like sales growth for the year and pleasingly they improved their margins even with the fall in the Australian dollar. Going into the new year, management indicated they are aiming to open five to six new stores. Shares in Nick Scali closed up 19.4% for the week. We own Nick Scali as a research driven investment in WAM Capital and WAM Research.