Shares in furniture retailer Nick Scali surged by as much as 11.5% to A$11.72, marking its top performance since November 24, 2022, if the gains are to be maintained.

The company reported a 26.1% rise in full-year net profit post-tax to A$101.1 million, significantly surpassing Citi’s estimated A$95 million and the Visible Alpha Consensus by 4%.

The firm also announced a 15.1% increase in FY23 revenue, amounting to A$507.7 million, as a result of increased deliveries and a decrease in order bank aging.

Citi analysts stated, ‘While it is tough times in the furniture sector right now, this is not a surprise with the Visible Alpha Consensus already factoring in a 37% FY24 NPAT decline.’ The company’s stock hit its highest point since early February, rising for the third consecutive day.

Nick Scali (ASX:NCK) is a leading Australian furniture retailer.