Nick Scali has reported a 15 per cent drop in first half profit to $21.6 million and says the coronavirus outbreak has exacerbated an already fragile consumer environment.

The furniture retailer said revenue for the six months to December 31 fell by 2.5 per cent to $137.5 million, weighed down by a horror first quarter when it experienced a “significant drop in store traffic” and negative comparable store sales growth of 8.3 per cent.

However, the company said sales picked up during the second quarter to help it beat underlying profit guidance and keep its interim dividend unchanged at 25 cents per share, fully franked.