Nick Scali delivered FY26 EBIT of $125 million, up 18%. Sales growth underwhelmed with a weak second half. Gross margin improved in FY26 to 65.6% up 207bp. The flat trading update for written sales orders signalled an improvement in momentum but it might be temporary. We have lowered our sales forecasts on our expectations of a tougher environment but lifted our gross margin expectations. We need to see more evidence of improving sales before getting positive on the sales recovery.