Nick Scali/NCK

NCK have done it again, really. Smashed expectations (e.g. EBITDA street was $74m for the half, a huge beat).

LFL sales returned to growth. Last time we wrote about NCK, we were discussing a) the big share sale from management (which turned out not to be a harbinger for weaker earnings), and, the below trading update, where like-for-like sales was down quite sharply.

At today’s result, we see the group written sales numbers look a lot better…

…, and, more importantly, the strong recent trading outcome.

So, not a surprise that the stock is up a lot, today.

Whilst the aggregate retail sales data has moderated over the last year, and was particularly weak in December, none of that seems particularly relevant to NCK at the moment.

And those solid sales outcomes have flown through the P&L to the very bottom, an excellent margin outcome.

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