OUR QUEST IS NOT TO BE BULLISH OR BEARISH, BUT TO CORRECTLY ASSESS FUTURE TRENDS

Citi rates NCK as Neutral

Citi sees a slightly cautious read-through for Nick Scali's UK business from FY26 results from DFS Furniture, the UK's largest upholstery retailer.

The broker notes softer revenue trends and signs of weakness across the broader UK upholstery market.

More positively, premium consumers are proving considerably more resilient than the mass market. This is supportive of Nick Scali's strategy to reposition the former Fabb stores towards a more premium offering, the analyst explains.

Neutral. Target $17.25.

Macquarie rates PMV as Outperform

Premier Investments' FY26 result met expectations with the recently lowered EBIT guidance, Macquarie points out.

Smiggle sales rose 1% and Peter Alexander slipped by -1% with an improvement in inventory, largely attributed to Smiggle clearances, the analyst notes.

NPAT missed the broker's forecast by -7% due to a one-off higher tax expense and higher finance costs versus expectations.

The share price liked the trading update with management indicating flattish revenue and gross profit for year-to-date FY27. The analyst likes the strategy change for Smiggle and the Peter Alexander store rollout.

EPS forecasts are tweaked slightly. Outperform retained. Target is unchanged at $15.70.

Citi rates UNI as Buy

Universal Store's FY27 executive incentive structure is largely shareholder-friendly and aligned with the company's strategy, Citi believes.

Only modest increases from FY26 are noted despite George Do's promotion to CEO and the implied EPS compound annual growth rate (CAGR) has softened slightly as the earnings base has grown.

In fact, Citi's main concern is Do's relatively low $575,000 fixed remuneration compared with other listed retailers, which could leave him vulnerable to being poached by a competitor.

Positively, the analyst notes the incentive package remains focused on EPS growth, capital discipline and successful store rollout.

Buy. Target $12.96.