Can dusk Sustain Growth Amid Store Closures and Market Shifts?
dusk Group Limited reports robust FY25 financial results with strong sales and earnings growth, while unveiling ambitious FY26 plans focused on store innovation and brand rejuvenation.
- FY25 total sales up 8.7%, underlying EBIT grows 22.9%
- Online sales surge 50.1%, contributing 7.8% of total sales
- AfterGlow store concept trial exceeds expectations in early FY26
- Planned FY26 store openings and closures to optimize footprint
- Brand and product rejuvenation targets broader, younger customer base
Strong FY25 Performance Sets Stage
dusk Group Limited, the Australian specialty retailer known for its home fragrance products, has delivered a solid financial performance for the fiscal year ended June 2025. The company reported total sales growth of 8.7% compared to the prior year, with like-for-like sales rising 7.1%. Underlying earnings before interest and tax (EBIT) surged 22.9%, reflecting effective execution of its business rejuvenation strategy. Online sales were a standout, jumping 50.1% and now representing nearly 8% of total sales, underscoring dusk’s growing omni-channel presence.
Innovative Store Concept and Product Refresh Drive Momentum
Central to dusk’s transformation is the rollout of its new AfterGlow store concept, designed to modernize the shopping experience and showcase refreshed product ranges. Early trials at locations including Macarthur Square (NSW) and West Lakes (SA) have exceeded internal expectations, with AfterGlow stores delivering double-digit sales growth. The company’s core Signature product range, relaunched across approximately 100 stores in September 2025, also contributed to strong sales momentum, supported by seasonal successes such as Halloween-themed collaborations.
Strategic Store Network Adjustments and Expansion Plans
Looking ahead to FY26, dusk plans to open six new stores while closing eight underperforming locations, reflecting a strategic effort to optimize its retail footprint. The AfterGlow concept will be expanded to more stores, with refurbishment plans contingent on Christmas trading results. Additionally, dusk intends to increase brand awareness through pop-up stores, aiming to attract a broader and younger demographic, including male shoppers, as part of its ongoing brand rejuvenation.
Broader Brand and Customer Engagement Initiatives
The company’s rejuvenation strategy extends beyond stores, encompassing product innovation in new categories such as bath and body, enhanced digital marketing, and a refined customer relationship management system to enable personalized marketing. Talent renewal and sales-focused training programs are also underway to improve store productivity and customer engagement. These initiatives collectively aim to position dusk as a lifestyle destination and preferred choice for home fragrance and gifting.
Governance and Leadership Updates
At the 2025 Annual General Meeting, dusk announced the stepping down of Non-Executive Director David MacLean, while Katherine Ostin was re-elected to the board. The meeting also approved the grant of performance rights to CEO Vlad Yakubson, aligning leadership incentives with the company’s growth objectives.
Bottom Line?
dusk’s FY25 gains and strategic FY26 initiatives position it well for sustained growth, but execution of AfterGlow expansion and customer engagement will be critical to watch.
Questions in the middle?
- Will AfterGlow store refurbishments accelerate following the Christmas trading period?
- How will dusk’s expansion into bath and body categories impact overall sales mix?
- What are the risks associated with closing more stores than opening in FY26?
