Citi flags possible recovery in UK market, positive on Aussie retailer Nick Scali

DFS Furniture

13/03/2025 19:22

** Citi says London-listed DFS Furniture's DFSD.L interim result suggests UK market recovery on the back of interest rate cuts and housing transaction growth

** DFS expects to beat annual profit expectations; trading through 10 weeks of the second half of FY25 has remained strong

** Aussie home furnishing retailer Nick Scali NCK.AX entered UK market in April 2024 after acquiring local retailer Fabb Furniture

** Citi also sees positive medium-term market tailwinds for Nick Scali's UK business

** DFS interim result supports our forecast for sales per store uplift of +41% in Nick Scali's UK stores between FY25 and FY28 - Citi

** Brokerage maintains Nick Scali's "buy" rating and a PT of A$20.64

** Nick Scali up 2.1% so far this year as of last close, outperforming a 5.4% decline on the ASX All Ordinaries index .AORD

 (Reporting by Nikita Maria Jino in Bengaluru)

 ((Nikita.Jino@thomsonreuters.com;))