AU Morning Wrap: ASX Flat, Star, Nick Scali Skyrocket

U.S. stocks edged higher Thursday after fresh data showing cooling inflation boosted investor optimism about the likelihood of the Federal Reserve pausing its interest-rate increases.

Energy and materials stocks weighed on the main index.

Star vaulted 19 per cent after securing a tax reprieve from the NSW government.

Baby Bunting slumped 3.8 per cent after slashing profit and dividend.

Nick Scali leapt 11.1 per cent following a record net profit of $101.1 million.

The retailer said the double-digit gain in top-line sales was underpinned by increased deliveries and supply chains normalising, helping to reduce the order book wait time. The year also was boosted by 12 months of revenue contribution from Plush Think Sofas, which was acquired in November 2021.

In July the prams and baby goods retailer cut its guidance following the poor performance of a key "Storktake" sales period in June.

It also flagged gross margin pressure, now showing gross margins over 2023 were squeezed 118 basis points to 37.4 per cent.

Full year 2023 sales inched up 3.4 per cent over with its bottom line net profit slashed by nearly 50 per cent to just $9.9 million.

Comparable store sales fell 3.6 per cent. Online sales of $103 million, now represent 20 per cent of sales -- about double pre-COVID levels.

A fully franked dividend of 4.8c per share was flagged, cut from 7.5c a year ago.

But the Rupert Murdoch-owned company, which owns newspapers in Australia, the UK and the US, as well as REA Group and Foxtel, posted annual earnings before interest, taxation, depreciation and amortisation of US$1.4 billion, which chief executive Robert Thomson said was the second highest ever.

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