Tariff refunds are back in the headlines, with Amazon receiving US$600 million after a Supreme Court ruling that some of the Trump era tariffs were illegal. Amazon plans to share part of that refund with customers through direct payouts or lower prices, and other large retailers such as Apple, Walmart and Costco are also seeking refunds. For investors, that raises fresh questions about which consumer discretionary stocks could see cleaner margins or more pricing flexibility as past tariff costs are unwound. This article walks through 3 stocks from our screener that appear positively exposed to this tariff news.

Nick Scali (ASX:NCK)

Overview: Nick Scali is a mid to premium furniture retailer that designs, sources and sells sofas, dining and bedroom furniture, and accessories through a network of showrooms and online channels across Australia, New Zealand and the UK.

Operations: Nick Scali generates A$513.5 million in revenue from furniture retailing, with A$482.7 million from Australia and New Zealand and A$30.8 million from the UK.

Market Cap: A$1.4b

Nick Scali sits in a sweet spot for this tariff refund story because it already benefits from supplier discounts and lower freight costs, and has a track record of using those savings to cut prices and lift volumes rather than simply protecting margins. The stock combines high returns on equity, a reliable dividend and strong brand recognition with some clear watchpoints, including earnings pressure over the past five years and a heavy reliance on external borrowing. With new markets like the UK still bedding down and valuation signals pointing to a gap between price and estimated fair value, investors watching consumer discretionary stocks may want to understand what the market could be missing on Nick Scali.

Nick Scali’s combination of pricing power and tariff tailwinds could be masking a very different risk-reward profile than the share price implies. Get the full story in the analysis report for Nick Scali

Haverty Furniture Companies (HVT)

Overview: Haverty Furniture Companies is a long established U.S. retailer that sells residential furniture, custom upholstery, mattresses and home accessories under the Havertys brand through a network of stores and its website.

Operations: Haverty Furniture Companies generates US$766.5 million in revenue from home furnishings retailing across the United States.

Market Cap: US$421.8 million

Haverty Furniture Companies provides a focused way to gain exposure to U.S. furniture spending at a time when tariff refunds and reduced import costs could support cleaner margins and sharper pricing. Analysts expect strong earnings growth while the stock trades at a large discount to one cash flow based fair value estimate and still offers a dividend yield above 5%, although the payout is not well covered by earnings or free cash flow. Combined with an extended credit facility, an active buyback and management commentary that tariff refunds would be incremental to guidance, this presents a mix of potential upside drivers alongside funding, showroom and dividend sustainability risks that may warrant closer inspection before deciding how Havertys fits in a portfolio.

Haverty Furniture Companies sits at the crossroads of tariff relief, a high dividend payout, and an active buyback program, yet the real swing factor may be hiding in the 2 key rewards and 1 important major warning sign

AO World (LSE:AO.)

Overview: AO World is an online retailer that sells domestic appliances, consumer electronics and related services in the UK and Germany, using its own website, marketplaces and third party platforms. It also operates recycling facilities, logistics services and a second life tech platform through musicMagpie.

Operations: AO World generates £1.3b in revenue from online retailing of domestic appliances and ancillary services, all from the United Kingdom.

Market Cap: £547.4 million

AO World provides focused exposure to online appliance and electronics spending in the UK at a time when tariff refunds could support margins and pricing relative to rivals like Amazon. Earnings have improved, ROE is above 20%, and management has returned cash through a special dividend and buybacks. The shares are reported to trade below some fair value and analyst target estimates. However, the funding base consists entirely of external borrowing and the P/E is slightly above sector averages, so the balance between growth, cost of capital and competitive pressure is important. The AO World investment case depends on how these factors interact with tariff relief over the coming years.

AO World’s margin rebuild and tariff relief story is only half the picture. The real question is how the next few years could look if expectations reset. Start with the analyst forecasts for AO World

The three stocks in this article are just a starting point and the full screener uncovers 23 more consumer discretionary companies with equally compelling stories in the Consumer Discretionary Stocks screener. Use Simply Wall St to identify and analyze the specific catalysts, financial traits and narratives that matter most so you can focus on the highest conviction ideas in this theme.

Take Control of Your Investment Journey

If AO World or any of these companies sound like a great opportunity, register for FREE with Simply Wall St and add your companies to a Watchlist to monitor the share price against the fair value the ideal entry point. Once you've made your move, manage your holdings with our Portfolio Command Center that filters out the noise to deliver only the most critical, actionable updates. Throughout your journey, our Community allows you to filter the best ideas from thousands of investor perspectives. By uncovering hidden catalysts and risks early, you'll accelerate your decision-making and stay one step ahead of the market.

Seeking Fresh Alternatives Before Others Catch Up

Some of the most interesting stocks move from quiet to crowded fast. New stories build momentum, prices start flying, and ideal entry points get caught and passed. Scan these fresh ideas while it matters to evaluate them at an earlier stage.

• Spot companies quietly building strength before momentum traders arrive by scanning our curated 9 resilient stocks with low risk scores, which prioritize balance sheet resilience and measured growth potential.
• Target income opportunities that many investors overlook by reviewing a hand picked set of 4 dividend fortresses with the potential to help anchor long term cash flow.
• Consider positioning for a potential infrastructure build out by tracking curated 35 power grid technology and infrastructure stocks that could benefit if electricity demand and grid upgrades accelerate.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.