TOL - 11th Oct, 2023
Meet the man who turned Nick Scali into a 10-bagger
Nick Scali has been a 10-bagger on the ASX since listing in 2004. The man behind this iconic retailer says there is more opportunity ahead.
Nick Scali is a furniture powerhouse. Since listing in May 2004, the store count has grown from 10 to 107 without having to tap shareholders for additional capital. Who knew Australians had such an insatiable appetite for leather lounges?
Equally as impressive as store growth are the financial returns investors have enjoyed. Since listing, sales have increased by 1,068%, net profit has increased by 1,407%, and the dividend has increased by 1,263%. From a listing price of $1 to the current share price of $10.79, Nick Scali has been a 10-bagger for shareholders who have stayed the course.
The driving force behind this impressive story is Anthony Scali, son of founder Nick, an ambitious Italian immigrant who came to Australia in 1955 at just 18. After a brief stint selling televisions in Melbourne, Nick moved to Sydney and opened his first store in 1962 on the Hume Highway in Ashfield.
Anthony Scali worked in the family business from a young age and progressively played a more significant role in the running of the growing retailer. He officially took over the CEO role when the company was listed on the ASX and says he has no plans on stepping aside and has eyes for further expansion into the UK.
In this episode of Success and More Interesting Stuff, Anthony talks about the mindset and approach that has created one of Australia’s most iconic retailers.
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Timecodes:
- 00:00 - Introduction
- 01:56 - The Nick Scali advertisements
- 02:47 - Slow and steady growth
- 04:15 - Why investors are cautious on retailers
- 05:25 - The start of Nick Scali
- 08:43 - Nick Scali’s business philosophies
- 12:16 - How Anthony got started in the furniture business
- 14:01 - Moving from niche to mainstream offerings
- 15:31 - Lessons in debt and property
- 18:32 - Nick Scali (ASX:NCK) lists on the ASX
- 20:41 - Passing the CEO baton from Nick to Anthony
- 24:07 - Growing the family business
- 26:21 - The initial plan for store growth
- 27:50 - The ingredients for success in retail
- 35:25 - The Nick Scali niche - quality and value
- 37:55 - Anthony Scali’s approach to management
- 40:45 - Anthony Scali sells down some of his shareholding
- 43:54 - The vision for Nick Scali in Australia and New Zealand
- 45:49 - Taking the Nick Scali concept to the UK
- 49:32 - The outlook for the Australian market
- 50:57 - Antony Scali on succession planning but no plans to retire
- 53:45 - Property investments still intriguing, even after the 1990s experience
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You can access all episodes of Success and More Interesting Stuff here and on all good podcasting platforms.
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Matthew is the Principal and Portfolio Manager at Centennial Asset Management. Prior to this, Matthew was the CIO at Wilson Asset Management between 1998 and 2011, achieving 18% p.a. over the period.
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Matthew is the Principal and Portfolio Manager at Centennial Asset Management. Prior to this, Matthew was the CIO at Wilson Asset Management between 1998 and 2011, achieving 18% p.a. over the period.
Expertise
Matthew is the Principal and Portfolio Manager at Centennial Asset Management. Prior to this, Matthew was the CIO at Wilson Asset Management between 1998 and 2011, achieving 18% p.a. over the period.
Expertise
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