Furniture retailer Nick Scali has delivered a 22.1% jump in full-year net profit despite signs Australian consumers are becoming increasingly cautious about big-ticket discretionary purchases.

The company reported group net profit after tax of $75.7 million for FY26, while revenue increased 4.3% to $516.7 million.

But executive chairman and CEO Anthony Scali (pictured) said store traffic in Australia had fallen by double digits, with visits down as much as 15% during the final quarter.

Higher living costs, elevated interest rates and weaker housing activity are weighing on consumers, with shoppers delaying major purchases.

The slowdown is becoming more apparent in Nick Scali’s core Australia and New Zealand business. Written sales orders increased 2.7% across FY26 but fell 3.6% in the second half.

Orders during the first five weeks of FY27 were flat against the same period last year.

Despite softer demand, the ANZ division increased revenue 5.1% to $476.7 million, while underlying net profit rose 10% to $80.5 million.

Group gross margin also improved, benefiting from pricing, sourcing and inventory management.

The standout was Nick Scali’s UK operation, where the company has been transforming the acquired Fabb Furniture network.

The UK business narrowed its full-year loss to $4.8 million and returned a $0.8 million profit in the second half.

Like-for-like UK written sales orders climbed 19% during the second half, while orders surged 35% in the first five weeks of FY27.

Scali said a lack of stores and brand awareness remained the biggest constraints on further UK growth.

Expansion will remain a key part of the retailer’s strategy. Six new Australian stores opened across FY26 and July, with another four expected during FY27.

A new UK store is scheduled to open in October, with the company negotiating additional sites.

Nick Scali declared a fully franked final dividend of 39 cents per share, taking total FY26 dividends to 78 cents, compared with 63 cents a year earlier.