Nick Scali has cautioned investors that first-half revenue across Australia and New Zealand will drop by approximately 11 per cent to 14 per cent compared to the prior corresponding period. The ASX-listed furniture retailer recorded a 15 per cent decline in first-quarter sales orders following a mid-August cyberattack and persistent weakness across its core consumer markets. That contraction contrasts with the first quarter of fiscal 2026, when sales climbed 11 per cent.

The mid-August intrusion triggered “uncertainty and delays” for shoppers, the company stated at the time. Nick Scali alerted the Australian Cyber Security Centre and the Australian Federal Police, which subsequently investigated the security incident.

By contrast, the company reported stronger momentum in the UK, where it entered the market through the acquisition of Fabb Furniture in 2024. Ongoing capital expenditure into renovating and expanding British stores helped lift written orders by 29 per cent year-on-year in the first quarter.

The operational disruption began in mid-August when unauthorised parties breached internal systems and accessed customer names, addresses, emails and phone numbers. Nick Scali informed the Australian Cyber Security Centre and the Australian Federal Police to investigate the intrusion.

Enterprise resource planning systems stayed offline for roughly three weeks. Store staff continued writing business manually while technicians contained the incident.

Cleaning up the breach generated a $980,000 bill for legal advisers and forensic consultants. Management will classify those advisory expenses as non-underlying items rather than counting them against operating earnings.

Nick Scali is finding better traction in the United Kingdom, where it acquired Fabb Furniture in 2024 to seed an offshore division.

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