Nick Scali shares sink 15.3 per cent after profit warning
Furniture retailer Nick Scali warns sales will fall 11 to 14 per cent in the December half.
Nick Scali shares plunged 15.3 per cent after the company issued a profit warning. The furniture retailer said sales in the December half will fall 11 to 14 per cent compared with last year.
Customers are tightening budgets after cost-of-living pressures, the May federal budget, and rising interest rates. Nick Scali expects net profit to drop as much as 32 per cent.
The weakness spread across retail stocks, with Harvey Norman, Wesfarmers, JB Hi-Fi, and Super Retail Group also falling. The broader ASX dropped 0.5 per cent in early trade.
Tech stocks bucked the trend, gaining on strong US sentiment.
- 15.3 per cent
- Nick Scali share fall
- 11 to 14 per cent in December half
- Expected sales decline
- 43 per cent chance November 3
- Rate hike probability
Why it mattersShows how Australian consumers are cutting spending on big-ticket items as interest rates and cost of living squeeze household budgets.
AustraliaRising interest rates and cost pressures are squeezing household spending on furniture and discretionary retail goods, a warning sign for the sector's health.
✓ Claims checked against the source. checked 4 h ago
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