1927 ET - Nick Scali's bull at Wilsons isn't worried by the Australian furniture retailer's gross margin outlook, seeing compression as temporary rather than structural. Analyst Tom Camilleri tells clients in a note that he was surprised by the company's advice that its 1H local gross margin would decline by at least 240 basis points on fiscal 2024. He already anticipates easing freight rates and potentially price rises leading to a modest 2H recovery. Wilsons cuts its target price 0.6%, to A$17.30, and keeps an "overweight" rating on the stock, which is up 0.1%, at A$14.52. (stuart.condie@wsj.com)
(END) Dow Jones Newswires
October 21, 2024 19:28 ET (23:28 GMT)
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