How Dusk Group’s 7.8% Revenue Growth Signals a Retail Revival
Dusk Group Limited reported solid financial growth for FY25, with revenue up 7.8% and net profit rising 5.5%, underpinned by strong online sales and strategic store expansions.
- Revenue increased 7.8% to $137.4 million
- Underlying EBIT surged 22.9% to $7.7 million
- Net profit after tax rose 5.5% to $4.4 million
- Online sales jumped 50.1%, representing 7.8% of total sales
- Two new Australian stores opened; AfterGlow concept trial underway
Financial Performance Highlights
Dusk Group Limited has delivered a robust set of results for the 52 weeks ended 29 June 2025, with revenues climbing 7.8% to $137.4 million. The company’s net profit after tax (NPAT) increased by 5.5% to $4.4 million, reflecting steady operational improvements despite a challenging retail environment. Underlying earnings before interest and tax (EBIT), a key non-IFRS metric, rose sharply by 22.9% to $7.7 million, signalling enhanced profitability and cost management.
Operational Momentum and Strategic Initiatives
The growth was driven in part by a remarkable 50.1% surge in online sales, which now account for 7.8% of total revenue. This digital channel expansion was supported by investments in website experience and digital marketing. Meanwhile, the company opened two new stores in Australia; Warringah Mall in New South Wales and Gladstone in Queensland; while closing one underperforming location, maintaining a total of 145 stores nationally.
Dusk’s loyalty program, dusk Rewards, remains a cornerstone of its customer engagement strategy. Membership renewals and sign-ups increased by 29%, with over 653,000 paid-up members contributing 57% of total sales. The program continues to drive higher average transaction values and shopping frequency among members, underscoring its strategic importance.
Innovation and Brand Rejuvenation
In FY25, Dusk initiated Phase 1 of a product rejuvenation strategy, introducing new ranges and expanding into adjacent categories like bath and body products. The company is also trialling a new store concept called "AfterGlow," designed to refresh the brand and enhance financial performance. Early results suggest this concept resonates well with customers, delivering materially better sales, with further testing planned during peak seasons.
Financial Position and Dividend
At the end of the period, Dusk reported a strong net cash position of $20.2 million with no drawn debt, reflecting disciplined capital management. The Board declared a fully franked final dividend of 2 cents per share for FY25, continuing its commitment to returning value to shareholders.
Risks and Outlook
Despite the positive momentum, the Board refrained from providing FY26 earnings guidance due to ongoing macroeconomic uncertainties. Key risks include potential economic downturns affecting consumer spending, supply chain disruptions, competitive pressures, and regulatory compliance challenges. The company remains focused on operational agility and its vertically integrated business model to navigate these headwinds.
Dusk’s international expansion remains cautious, with New Zealand as its only overseas market. The company continues to evaluate opportunities in similar markets using a disciplined test-and-learn approach.
Bottom Line?
Dusk’s FY25 results mark a confident return to growth, but investors will watch closely how new initiatives and market conditions shape FY26.
Questions in the middle?
- How will the AfterGlow store concept perform during peak trading seasons and across different locations?
- What is the company’s strategy to mitigate supply chain and foreign exchange risks amid global uncertainties?
- Will Dusk accelerate international expansion beyond New Zealand, and how will it manage associated risks?
