Nick Scali Can Outperform Despite Stiff Headwinds

Dow Jones
07/15

2348 GMT - Furniture retailer Nick Scali likely faces flat-to-nominal sales growth in FY27 and pressure on its gross margin, says Bell Potter. However, these headwinds should be cushioned by the strength of the Australian dollar and cost control. Bell Potter cuts its FY27 EBIT forecast by 6% to 136.5 million Australian dollars, and trims its underlying net profit estimate by 7% to A$86.6 million. Higher interest rates are crimping households' ability to spend and rattling consumer confidence. "We expect challenging trading conditions over the next nine months and view FY27 as the cyclical low point for most retailers," analyst Chami Ratnapala says. Bell Potter thinks Nick Scali can outperform other retailers and retains a buy call on the stock. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

July 14, 2026 19:48 ET (23:48 GMT)

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