Furniture retailer Nick Scali has recorded its best day in two years despite housing and retail jitters preventing the company from offering full-year guidance.
Nick Scali stock closed at $5.55, up 39 cents or 7.56 per cent, after it announced its interim dividend would be lifted to a fully-franked 25 cents per share, from 14 cents a year ago, thanks to an 8.0 per cent profit lift to $25.39 million in the six months to December 31.
The company's first-half revenue also jumped 10.3 per cent, or $13.18 million, to $141.1 million, however this was credited to the opening of four new stores rather than a lift in like-for-like sales.
The retailer said it was unwilling to make a full-year prediction amid difficult trading conditions.
"As evidenced by H1, the company can achieve profit growth in periods of flat comparable sales, through the expansion of the store network," the company said in a presentation to investors.
"However, given the volatility in recent sales and global uncertainty, it is difficult to provide guidance around profitability for full year to June 2019."
Operating expenses increased as a percentage to sales to 36.1 per cent, from 35.2 per cent a year ago, due to the timing of new store openings and inflationary cost increases in stores with flat sales growth.
During the half year, three new Nick Scali Furniture stores were opened in Queensland, along with one in New Zealand, bringing total store numbers to 55.
Two further store openings are targeted in the second half of FY19 and Nick Scali has a long-term store network target of over 80 stores across Australia and New Zealand.
Shares in Nick Scali traded as high as $5.965 before closing at $5.55.
The share price was still down from $7.03 a year ago.
The company gained 9.64 per cent in a single day on February 14, 2017.
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