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Nick Scali profits to climb 90 per cent

·1-min read

Furniture trader Nick Scali has raised its profit forecast by 90 per cent as Australians continue to splurge on household goods during the pandemic.

The company on Tuesday said full-year net profit after tax would be between $78 million to $80 million.

The rosy outlook has been prompted by better sales, which for the third quarter rose by 50 per cent on the same quarter last year, which marked the beginning of coronavirus lockdowns.

Full-year earnings before interest, tax, depreciation and amortisation were forecast to be higher by 85 per cent to $78 million.

This calculation included repaying $3.5 million in JobKeeper wage subsidies received during the first half of the financial year.

Retailers specialising in household goods have reaped benefits from Australians stuck at home during the pandemic.

Bunnings Warehouse, online shopping platform Kogan and fashion stores such as Peter Alexander have had their sales surge.

Investors appeared to think Nick Scali should have greater profits on the way. They sent shares down by 2.76 per cent to $10.40 at 1550 AEST.