Nick Scali (ASX:NCK) expects net profit after tax of AU$30 million to AU$33 million for its Australia and New Zealand operations in the first half of fiscal 2025, the furniture retailer said at its annual general meeting according to a Monday filing with the Australian bourse.

Materially higher unexpected freight rates are expected to bring the gross profit margin down 240 basis points or more in the first half for the region compared with the fiscal 2024 gross margin of 66%.

Sales revenue for Australia and New Zealand is forecast to be in the range of AU$217 million to AU$222 million.

In the UK, the company expects to incur first-half losses of AU$3.3 million to AU$3.7 million before one-off integration costs, or AU$5.1 million to AU$5.9 million after one-off integration costs.

In the same filing, Nick Scali Chairman John Ingram announced his retirement by rotation in line with the company's constitution. He also presented himself for re-election to serve one more year.