Key Highlights

  • Sales increased 8.4% to $148.9 million, while like-for-like sales rose 7.8%.
  • Underlying EBIT climbed 15.6% to $8.9 million and statutory NPAT increased 23.1% to $5.4 million.
  • Online sales rose 16.9% to $12.7 million, with Rewards membership reaching 768,000.
  • FY26 dividends totalled 5.6 cents per share, including a fully franked final Dividend of 1.6 cents.

Dusk Group (ASX: DSK) surged +7.14% to $0.75 AUD today following the release of FY26 Earnings that showed sales growth accelerating and profitability expanding. The share market rewarded the company's improved financial performance and solid momentum.

The company delivered higher Revenue and profit in FY26, with sales growth accelerating during the second half as its refreshed product range gained traction. The home-fragrance retailer reported sales of $148.9 million for the 52 weeks ended 28 June 2026, an increase of 8.4% from $137.4 million in FY25. Like-for-like sales increased 7.8%, comprising 6.4% growth across stores and 16.9% online.

Gross profit rose 10.1% to $96.2 million from $87.3 million, while the Gross Profit margin improved to 64.6% from 63.6%. Dusk attributed the improvement to its product range transition, promotional discipline, freight and logistics efficiencies and favourable foreign exchange movements during the second half.

Underlying EBIT increased 15.6% to $8.9 million, compared with $7.7 million in the previous year. Underlying NPAT also increased, rising 7.6% to $6.6 million from $6.1 million. Statutory NPAT was $5.4 million, up 23.1% from $4.4 million.

Online Growth and Customer Engagement

Digital sales remained an important contributor to Dusk's FY26 performance. Online revenue reached $12.7 million, representing a 16.9% increase from $10.8 million a year earlier. Online penetration rose to 8.5% of total sales, compared with 7.9% in FY25.

The company also reported continued growth in its customer membership base. Dusk Rewards members reached 768,000 at year-end, an increase of 18% year on year. Member sales rose 13% to $88 million and represented 59% of total sales.

Average transaction value increased 8% to $52, indicating higher basket sizes despite the company's expansion into lower-priced categories such as Bath & Body and personal care.

Costs and Balance Sheet

The improvement in profitability came alongside higher operating costs. Cost of Doing Business increased 9.3% to $83.2 million from $76.1 million, while CODB as a percentage of sales rose to 55.9% from 55.4%. Excluding one-off costs of $1.0 million, the company continued to invest in business intelligence, artificial intelligence and personnel.

Dusk ended FY26 with net cash of $18.3 million and no debt. However, net cash declined from $20.2 million a year earlier, reflecting increased Investment in inventory and the broader business. Inventory stood at $21.2 million, up from $17.3 million at the end of FY25.

The store network also contracted, with 144 stores at period end, representing a net decrease of six stores. The company continues to focus on store productivity and portfolio optimisation.

Dividend and FY27 Outlook

The Board declared a fully franked final dividend of 1.6 cents per share, taking total FY26 dividends to 5.6 cents per share. The final payment is scheduled for 23 September 2026, with a Record Date of 9 September.

Early FY27 trading showed like-for-like sales growth of 5.4%, while total sales increased 2.7% and total gross margin dollars rose 8.7%. Dusk expects first-half FY27 gross margin to remain above the prior corresponding period, supported by inventory management, product mix and sourcing benefits.

The company plans to open two stores and close three during the first half. It is also preparing for potential international expansion, with South Africa identified for a pilot involving three to five stores and an E-commerce platform during calendar 2027.

Conclusion

Dusk Group's FY26 results show higher sales, improved gross profit and increased earnings despite a rise in operating costs and a reduction in net cash. Online sales and customer membership continued to expand, while the refreshed Signature range contributed to sales momentum. The company's FY27 priorities centre on product development, inventory management, store optimisation and potential international expansion, with early trading indicating continued like-for-like sales growth.