Nick Scali has reported profit after tax fell 11.1% to $74.9 million for the full year ended June 30.

The furniture retailer said sales gained more than 18% thanks to its recent Plush acquisition, but revenue at its core Nick Scali brand fell because of lockdowns in China, which constricted shipments of sofas and lounges, as well as soaring freight costs.

Despite these challenges, the group was still able to deliver a strong result and end the year with a significant order bank which will translate to revenue in FY23.

Shares in Nick Scali were trading 3% higher during late morning trade.