Nick Scali (ASX:NCK), a leading furniture retailer in Australia and New Zealand, specialising in premium, stylish furniture, has reported significant disruptions to its supply chain due to operational issues at one of its freight forwarders and customs agents, which is now under administration. This situation has delayed a substantial number of the company’s shipping containers, affecting product deliveries across Australia.
In response to the current disruptions, Nick Scali has successfully sought Federal Court orders compelling shipping lines to release its containers, subject to certain undertakings. The company is now working to move the goods to its distribution centres and fulfil customer orders as soon as possible.
The delays are expected to result in unanticipated storage and detention costs, although these cannot currently be quantified.
Additionally, the disruptions are placing the company’s first-half FY25 net profit after tax (NPAT) guidance of $30m–$33m for Australia and New Zealand at risk.
Nick Scali has committed to updating its financial guidance once the full impact of these events becomes clearer.
Shares closed 1.7% lower at $13.84.