Ann: Full Year Results Announcement NCK, page-15

In FY 24, their earnings will probably be more driven by sales than margins (as they have already reached a high level of synergies linked to Plush acquisition).
One element which could partly support sales is the progressive recovery in the number of home transactions in Australia.
Regarding margins, they will benefit from 4 m$ of non recurring logistic cost in FY 23.

The other element which could support Nick Scali's valuation : the successful acquisition of Plush.
They bought Plush for $102 m in Nov 21.
Since then, they generated a high level of synergies (on purchases and CODB) and Plush probably generates now an annualised EBITDA* of around 40 m+ according to my estimates.
So, the market could begin to discount the fact that Nick Scali could do other transactions like Plush, in a furniture retail market which is expected to further consolidate.

* based on :
- EBITDA of 10 m$ in FY 20,
- 20 m$ annualised synergies on CODB,
- gross margin improvement from 54.8 % in FY 22 to 62.7 % in FY 23.