Citi trims earnings view for Australia's Nick Scali on housing headwinds

DFS Furniture

20/05/2026 20:34

** Citi cuts sales estimate for Australia's Nick Scali NCK.AX based against a backdrop of higher interest rates and a federal budget that was "not positive for housing retailers"

** Brokerage cuts EPS estimates for the home furnishing retailer by 2%-9% through fiscals 2026-2028

** Cuts target price by 26% to A$14.15, keeps "neutral" rating

** Citi expects gross margin expansion at company's ANZ segment but at a much lower rate, noting currency is likely to be a tailwind and the business typically does not excessively discount in periods of weaker demand

** Also trims estimates for UK business after British rival DFS Furniture's DFSD.L trading update revealed delicate consumer confidence

** NCK shares down 41.6% YTD

 (Reporting by Nikita Maria Jino in Bengaluru)

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