Australian-based furniture retailer Nick Scali reported an FY24 underlying profit after tax of $82.1 million, down 18.8% from the previous year.
The profit excludes $1.5 million in transaction costs associated with the acquisition of UK furniture retailer Fabb Furniture.
The acquisition, completed in May, contributed $8.3 million to the group's revenue.
The company's total revenue for FY24 was $468.2 million, a 7.8% decrease from $507.7 million in FY23.
Profit after tax also fell 20.3% to $80.6 million.
Basic earnings per share dropped to 98.7 cents from 124.8 cents, a decrease of 20.9%, reflecting the adverse impact on shareholders' returns.
CEO Anthony Scali noted the challenges faced during the year, "The current economic environment has proven difficult for retail, impacting our revenue and profit margins."
Nick Scali's ANZ gross margin improved to 66%, up 2.5% from the previous year, while written sales orders in ANZ reached $447.4 million, a 2.4% increase year-on-year.
The board declared a final dividend of 33 cents per ordinary share, down from 35 cents in the previous period.
Nick Scali's total net assets were $257.8 million, up from $179.9 million, bolstered by the acquisition but weighed down by the reduced earnings and market pressures.
As of June 30, Nick Scali held $111.3 million in cash and bank deposits, while net cash amounted to $39.6 million after repaying $20 million in borrowings during the year.
The company plans to continue its network expansion, aiming to open two Nick Scali stores and three to five Plush stores in FY25.