• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Fat Tail Daily

Investment Ideas From the Edge of the Bell Curve

  • Menu
    • Commodities
      • Resources and Mining
      • Copper
      • Gold
      • Iron Ore
      • Lithium
      • Silver
      • Graphite
      • Rare Earths
    • Technology
      • AI
      • Bitcoin
      • Cryptocurrency
      • Energy
      • Financial Technology
      • Bio Technology
    • Market Analysis
      • Latest ASX News
      • Dividend Shares
      • ETFs
      • Stocks and Bonds
    • Macro
      • Australian Economy
      • Central Banks
      • World Markets
    • Small Caps
    • More
      • Investment Guides
      • Premium Research
      • Editors
      • About
      • Contact Us
  • Latest
  • Fat Tail Series
  • About Us
Market Analysis Latest ASX News

Why Are Nick Scali Shares Down Despite Beating Guidance? (ASX:NCK)

Like 0

By Lachlann Tierney, Thursday, 05 August 2021

The Nick Scali [ASX:NCK] shares are down today despite beating guidance by a fair margin.

The Nick Scali Ltd [ASX:NCK] shares are down today despite beating guidance by a fair margin.

Shares of the prominent Aussie furniture retailer are trading at $12.28 a share, down 0.33% at time of writing.

ASX NCK - Nick Scali Share Price ChartSource: Tradingview.com

However, if you zoom out and look at the NCK stock’s 12-month performance, you will see the retailer has been in a consistent uptrend.

NCK shares are up 60% over the course of 12 months.

Nick Scali reports 100% profit growth

COVID-19 impacted many businesses but Nick Scali wasn’t one of them.

In fact, the pandemic acted as a catalyst for its growth in profits.

Company PresentationSource: Company presentation

Nick Scali reported a solid 100% gain in profit from $42.1 million to $84.2 million.

Moreover, the furniture retailer also boosted its revenues by 42.1% to $373 million from $262.5 million.

The good news for investors is that dividends is also climbing. Dividends climbed to 25 cents per share from 22.5 cents, an 11.1% increase.

Managing Director Anthony Scali was clearly enthused by the results:

‘The most pleasing aspect of our FY 21 result, was the ability of our distribution network across Australia and New Zealand to deliver the materially elevated sales revenue whilst maintaining the same level of costs as FY20.’

Nick Scali is targeting and profiting from both online and retail orders, as the COVID-19 restrictions are slowly being lifted.

Written sales orders in New Zealand grew by 95% compared to FY20, and same store written orders climbed by 40% over the same period.

Online written sales orders for FY21 were $18.3 million compared to $3.0 million in FY20.

The bottom line is that Nick Scali’s numbers today are strong and the business is adapting well to the e-commerce boom.

So, what’s the possible reason for the drop in the NCK share price today?

NCK stock is near all-time highs, and this can be one possible explanation of today’s minor correction in the share price.

 

There is a strong resistance level at the $12.50 mark and investors may be aiming to take profits off the table while they can.

Outlook for NCK Shares

Nick Scali was quick to realise the importance of jumping into the online retail business once the pandemic hit.

Due to this very decision, the company notes that ‘online growth was up 88% for the month of July 21 compared to July 20.’

Nick Scali could have a long way to go with solid fundamentals backed by consistent improvements in the business.

Continuation of store rollout and increasing online penetration could go hand-in-hand to aid the company’s future growth.

As I noted previously, the $12.50 mark could be a significant point of resistance. Smart traders and technical analysis focused investors would be seeing this as well.

If you’ve ever wanted to get into charting and understanding the strategies that these traders use, we have an excellent in-house charting guru, Murray Dawes.

Check out this report on technical analysis strategies and how to limit your risk when trading companies like Nick Scali Ltd [ASX:NCK].

Regards,

Lachlann Tierney

For Money Morning

PS: Our publication Money Morning is a fantastic place to start on your investment journey. We talk about the big trends driving the most innovative stocks on the ASX. Learn all about it here

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

Lachlann Tierney

Lachlann’s Premium Subscriptions

Publication logo
Fat Tail Investment Research

Latest Articles

  • The rock hunters are back in the game
    By Callum Newman

    Expect more capital raisings and drilling campaigns from the junior gold sector. It’s another example of things heating up.

  • The ‘Rich Dad, Poor Dad’ of Mining
    By James Cooper

    Former geologist, James Cooper, outlines his ‘Rich Dad, Poor Dad’ experience as a geologist by contrasting two companies he worked for.

  • America’s next Vietnam begins
    By Callum Newman

    I remember George W Bush on a US carrier declaring ‘Mission Accomplished’ when it came to Iraq in the second Gulf war. That was in 2003. The war was still going in 2011. Iraq became a failed state, instead of a flourishing democracy. The Iranians aren’t stupid.

Primary Sidebar

Latest Articles

  • The rock hunters are back in the game
  • The ‘Rich Dad, Poor Dad’ of Mining
  • America’s next Vietnam begins
  • Are we at war with China?
  • Looking for the Catalyst: European Rearmament

Footer

Fat Tail Daily Logo
YouTube
Facebook
x (formally twitter)
LinkedIn

About

Investment ideas from the edge of the bell curve.

Go beyond conventional investing strategies with unique ideas and actionable opportunities. Our expert editors deliver conviction-led insights to guide your financial journey.

Quick Links

Subscribe

About

FAQ

Terms and Conditions

Financial Services Guide

Privacy Policy

Get in Touch

Contact Us

Email: support@fattail.com.au

Phone: 1300 667 481

All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.

Fat Tail Logo

Fat Tail Daily is brought to you by the team at Fat Tail Investment Research

Copyright © 2025 Fat Tail Daily | ACN: 117 765 009 / ABN: 33 117 765 009 / ASFL: 323 988