Success and More Interesting Stuff
Business:Investing
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 (ASX:NCK) 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.
Time codes:
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
How WiseTech's Richard White built a 26-bagger growth darling
Alex Vynokur bet his house on ETFs now his firm is challenging the global behemoths of index investing
Australia has 12 million empty bedrooms... So could this company crack the housing crisis code?
Kerr Neilson: This opportunity will drive the next decade of growth
How Olev Rahn helped Bankers Trust survive the 1987 crash (and how he sees markets in 2024)
How ’The Speculator’s Diary’ got Ben Griffiths got hooked on small caps (and why he thinks we’re in a ’pause rally’)
Graham ‘Skroo’ Turner shares the highs and lows of Flight Centre and his 50 years in travel
The CEO who kicked the incumbents to the curb (and delivered investors a +4000% return in the process)
Stick to your knitting: Anton Tagliaferro’s secret to high conviction investing
“It was horrific.” How Robert Kelly overcame adversity to build a $6 billion business
Trailer: “It was horrific.” How Robert Kelly overcame adversity to build a $6 billion business
Breaking big stories: Tony Boyd’s Chanticleer playbook
25 years and counting: How this “market animal” has consistently beaten the market
Meet Paul Xiradis: Chief Investment Officer and Head of Equities at one of Bridge Street’s most famous money managers
How Dawn Kanelleas perfected the science of small-cap investing
Meet Dawn Kanelleas: The small cap investor who thrives on competition
The boy from Adelaide who rescued Australia’s failing property sector
Meet: Andrew Pridham - real estate guru, serial entrepreneur, author and Chairman of the Sydney Swans
Maggie Beer’s recipe for turning passion (and paté) into profit
Create your
podcast in
minutes
It is Free
The emPOWERed Half Hour
Aligned Money Show
Dubai Property Podcast
IBKR Podcasts
The Ramsey Show
The Clark Howard Podcast