Jefferies backs Australia's Nick Scali on strong gross margins, shares jump

Nick Scali

17/06/2025 05:19

Updates

** Shares of furniture retailer Nick Scali NCK.AX rise 2.2% to A$19.25

** Jefferies backs co due to its strong gross margin track record

** Cites Nick Scali's "scale across fewer stock keeping units (SKUs) than peers"

** Brokerage says although second-half freight costs have been slightly higher so far, it expects a modest impact on co's gross margins even if costs rise further

** Says co's in-house capabilities have mitigated the risk of repeating 1H25 freight issues

** Stock set for strongest trading session since May 20, if gains sustain

** YTD, Nick Scali up 28.2%

 (Reporting by Kumar Tanishk and Nikita Maria Jino in Bengaluru)

 ((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))