NCK -13.04%: the furniture retailer announced 1H results today with a strong 6-months unable to offset lacklustre commentary. Revenue jumped 57% to $284m, helped by improving delivery times and a full contribution from Plush which was acquired in 2021. EBIT was up 66% to $91m with the margin improving 150bps, and net profit was up 70% to $60.6m. The Plush integration seems to have been successful with $20m of annualized synergies now realized and integration of the Nick Scali sales model and point of sale operations improving conversion rates in the business. Much of the market’s issue was with comments around the 2nd half of the year with the company failing to provide FY guidance while saying January sales were down 12% on last year despite being “better than expected.” If the expectation is for sales to fall 12% in the back half of the year, Nick Scali will fall well short of current consensus which is for revenue of $493m and net profit of $95m.
MM is bearish NCK ~$11
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