News: Nick Scali FY profit down 22%

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Nick Scali Limited (ASX:NCK) has reported a 22.3 drop in its full year net profit, to $9 million, down $2.6 million from the year before.



The figure was weaker than anticipated and attributed to a 1.9 per cent drop in the furniture retailers gross margin.



Nick Scali outlets were compelled to offer promotions and discounts throughout the year in an effort to boost store traffic and generate sales.



Managing Director Anthony Scali says a $7 million differential between order intake and invoiced sales impacted the bottom line.



Mr Scali is optimistic that the order and invoice shortfall is set to benefit the company in its 2013 financial year.



Nick Scali directors have declared a dividend of 3.5 cents per share, fully franked.