Nick Scali delivered EBIT of $106 million, down 18%. Gross margins in ANZ were down 100bp but remain elevated on history at 65%. The UK losses at $9.6 million exceeded expectations, with losses guided to continue. Our EPS revisions are a downgrade of 1.6% to FY26e but upgrades of 2.5% and 1.5% to FY27e and FY28e. A large sales uplift is required to break even in the UK, with current conditions supportive domestically. Nick Scali will have to deliver on the UK and on growth in the domestic market.