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Nick Scali (ASX:NCK), JB Hi-Fi (ASX:JBH) and Lovisa ASX:LOV)

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Question asked 24/04/2026

Nick Scali (ASX:NCK), JB Hi-Fi (ASX:JBH) and Lovisa ASX:LOV)

Hi James and Team Your current view on Nick Scali, JB HI-FI & Lovisa. With higher inflation and higher interest rates expected how do you see the consumer discretionary stocks to perform? I know you hold Nick Scali & JBH in your portfolios. You would expect this sector would be where consumers would hold off spending. Would you hold off buying in this sector? In particular I've never gotten set to buy NCK - what price would you pay now? regards Debbie

Answer

Hi Debbie,

A good question in the current environment.

It’s important to recognise that stocks generally lead the news, economic in this case, by around 6-months or so. The Australian Retail Sector has already corrected more than 25%, largely for the reasons you cited. The question is whether they have fallen enough to offer investors good risk/reward at current levels.

The consumer discretionary sector represents more than 7% of the ASX200 and while we remain underweight across our portfolios, we are comfortable to dip our toe into the proverbial water at current levels.

Specifically, we like NCK as it makes new lows for 2026, under $15, and JBH around $76. We don’t think LOV is the business it once was, and we have no interest buying into that stock, even though it’s almost halved. We also discussed Eagers Automotive (ASX:APE) earlier in the month Here.

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ASX200 Retailing Index

LAST UPDATED 24/04/2026 13:03

Latest Reports

Afternoon report 24/04/2026

The Match Out: ASX claws back early losses, SUN impresses on FY27 outlook

A choppy session that mirrored yesterday’s move to end the week as higher oil prices kept a lid on the local market for most of the day until a decent ~50pt rally from the lows saw the index finish almost flat into the close. The selling in financials eased, providing some stability, while materials weighed as gold stocks took a hit.