What's going on?, page-15

12.1% collapse in sales in Jan vs. year prior.
28% collapse in online sales.
Gross margin drop.

"Group written sales orders the period were $210.3m, representing growth of 3.4% on the prior corresponding period."
- interpretation, given that according to ABS inflation on household goods is at 8.4% (we know true inflation is much higher), then technically sales fell 5% for the group... I.e. they needed sales of 8.4% to just maintain.

Inventory build up in the DC is concerning, I did read a lot about angry people who hadn't received goods, but this needs to be balanced with holding too much stock.

But the kicker is "The 2H FY23 result will depend upon trading during February to April and at this point it is difficult to provide further guidance".
That says... January was a bloodbath, was that temporary, or can we turn it around...

Also, the way Mr Scali did the conference call for guidance was savage.

Fascinated to see how they turn this one around, but I think this is the beginning, clearly Jan orders show how rapidly sales are slowing down, inventory build up in December shows stock not moving through. They had to disclose this to the market to manage expectations ahead of annual report.

I'd suggest going into a store, and chatting to the retail staff at both Plush & Nick Scali. I've been doing that over the last weeks and it's interesting to hear it from them.