dusk Group FY25 Sales Rise 8.7%, EBIT Jumps 22.9%, Dividend Up 5.5 Cents

Strong Sales Growth Amid Shifting Consumer Trends

dusk Group Limited has delivered a robust financial performance for the 52 weeks ending 29 June 2025, with total sales climbing 8.7% to $137.8 million. This growth was underpinned by a remarkable 50.1% surge in online sales, which now represent nearly 8% of total revenue, alongside a more modest 4.4% increase in store sales. The company’s omni-channel strategy appears to be gaining traction, with digital marketing and click & collect services driving higher traffic and conversion rates.

Margin Pressure and Cost Discipline

Despite the top-line growth, dusk’s gross margin dipped slightly to 63.7%, down 68 basis points from the previous year. This was largely due to heightened promotional activity and currency depreciation in the second half of FY25. However, the company managed to partially offset these headwinds through improved supply chain efficiencies and easing freight costs. Cost of doing business rose 6.6%, but the rate of increase slowed significantly in the second half, reflecting tighter cost control and enhanced store wage productivity.

Profitability and Dividend Boost

Underlying earnings before interest and tax (EBIT) rose 22.9% to $7.7 million, a clear sign that dusk is successfully translating sales growth into improved profitability. The company ended the year with a strong net cash position of $20.2 million and no debt, providing a solid financial foundation. Reflecting confidence in the business, the board declared a fully franked final dividend of 2.0 cents per share, bringing the full-year dividend to 12.0 cents per share, up 5.5 cents from the prior year.

Strategic Initiatives and FY26 Outlook

CEO Vlad Yakubson highlighted the pivotal nature of FY25, crediting strategic initiatives such as product rejuvenation, omni-channel expansion, and disciplined cost management for the company’s success. Looking ahead, dusk plans to trial its new AfterGlow store format at Macarthur Square in New South Wales, aiming to boost incremental sales and earnings. The company also anticipates a temporary margin impact in the first half of FY26 due to the relaunch of its core Signature product range, which accounts for around 27% of total sales.

Early trading in FY26 shows mixed results, with July sales down 7.2% year-on-year but August rebounding with a 4.8% increase. The company remains cautiously optimistic, supported by strong product collaborations and ongoing efforts to diversify peak trading periods beyond traditional events like Christmas and Mother’s Day.

Building a Lifestyle Destination

dusk continues to evolve from a specialty home fragrance retailer into a broader lifestyle destination, introducing new categories such as bath and body products. The loyalty program remains a key pillar, with 653,000 active members contributing 57% of total sales. The company is leveraging data analytics and personalization to deepen engagement and drive shopping frequency among its loyal customer base.