NCK +0.97%: a choppy day for the furniture retailer, but shares closed higher in the end reflecting the small beat. Revenue was down 5.4% on last year to $180m, though earnings fell 6.6% to $35.6m in the half as various COVID related costs jumped – store closures & supply chain disruptions the culprits. Earnings are on track to meet full year expectations however Nick Scali will get the benefit of a full half contribution from Plush-Think Sofas which they acquired mid-way through the first half. Plush contributed $31.5m to sales in the 2-months since the deal completed. The business will need to continue to manage supply chain issues with the outstanding order book continuing to grow in January, however they’ve done well to at least maintain the bumper sales levels from the previous period.
MM likes NCK as a top quality retailer, but we’re neutral/negative the sector here
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