NCK +13.27%: the furniture retailer hit 6-month highs today on a strong result but flagged a weak start to FY24. Revenue of $507m was largely in line with consensus however better margins drove a 5% beat at the profit line to $101m. Margins were helped by a full-year contribution from Plush, a business they acquired in 2021 with synergy benefits helping earnings while falling freight costs were also supportive. As we have seen with other retailers, Nick Scali has watered down FY24 with the July order book starting -8.1% below July FY23.
MM is neutral NCK
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