Dusk Group Ignites Growth with New Store Concept and Product Revamp

Strong Financial Performance in FY25

Dusk Group Limited (ASX – DSK) delivered a solid financial performance in the 2025 fiscal year, with total sales climbing 8.7% to $137.8 million. This growth was fuelled by successful product collaborations, a well-received Christmas product range, and a remarkable 50.1% jump in online sales, which now account for 7.8% of total revenue; surpassing pre-pandemic levels.

Despite facing margin pressure from increased promotional activity and foreign exchange headwinds, the company managed to grow gross profit by 7.5% to $87.7 million. Operational efficiencies helped keep the Cost of Doing Business tightly controlled, improving by 110 basis points to 55.3% of sales. Underlying earnings before interest and tax (EBIT) rose 22.9% to $7.7 million, underscoring the effectiveness of management’s strategic initiatives.

Strategic Growth Initiatives and Product Innovation

Under CEO Vlad Yakubson’s leadership, Dusk has embarked on a rejuvenation strategy that is reshaping the brand and expanding its market reach. A key highlight was the expansion of the Bath & Body category, which grew from around 1% to over 5% of sales, attracting younger and more diverse customer segments, including males and youth shoppers.

The company also launched the AfterGlow store concept, a complete overhaul of its retail environment featuring digital screens, enhanced lighting, and improved visual merchandising. Early trials of AfterGlow stores in Adelaide and Sydney have exceeded expectations, with sales up 25% and significant increases in member sales and new customer acquisition.

Looking Ahead – FY26 and Beyond

For FY26, Dusk plans to build on this momentum by refreshing its core Signature Collection, which accounts for 27% of sales, and continuing to roll out the AfterGlow concept across its store network. The company aims to reset store culture with a stronger sales focus and enhanced training, while leveraging a new customer relationship management tool to better target youth and unisex demographics.

Trading in the first 16 weeks of FY26 showed modest growth of 0.4% on a reported basis, but underlying sales excluding prior year collaborations rose 13.1%. The company is also optimizing its store portfolio by opening new locations and closing underperforming ones to maximize profitability.

Meanwhile, the Board announced the retirement of long-serving director David MacLean, with a search underway for his replacement. The company’s strong cash position and dividend payout, including a special dividend, reflect confidence in its strategic direction and financial health.