NCK

Interesting snippets from the Nick Scali call.

June 23 had an unusual bump for the month, in what had been up to that point very volatile trading.

We know this, because they called it out in the first slide in the deck.

And so the first question at the analyst Q&A was “well, was it discounting, promotional activity, to bump up June?”.

To which management said “no, we didn’t do anything”.

And so the follow up question, “well, was it interest rates?”

To which mgmt say “no, we don’t really know what it was”.

And the points about July are well taken, too. July didn’t see a big collapse, after the bumper June. So it wasn’t an unusual pull forward in consumer decision making.

In many ways, NCK staggers me. The product is great, I’m in the market for a new couch, but the discretionary nature of a couch is about as discretionary as it gets.

People building new homes buy new couches, and the new home sales are down.

So, not one for us, but they do continue to surprise on the upside, even relative to their own internal expectations.

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