Dusk Group Limited reported a solid first half of FY26 with total sales rising 5.1% to $91.8 million, underpinned by product innovation and a successful AfterGlow store format trial. The company also announced a fully franked interim dividend of 4.0 cents per share.
- Total sales up 5.1% to $91.8 million, record 1H result
- Online sales surged 16.5%, now 8.7% of total sales
- Underlying EBIT increased 3.5% to $14.3 million
- AfterGlow store format trial successful, expanding network rollout
- Interim dividend declared at 4.0 cents per share, fully franked
Solid Sales Growth Amid Product Rejuvenation
Dusk Group Limited has delivered a commendable performance in the first half of FY26, posting total sales of $91.8 million, a 5.1% increase compared to the prior corresponding period. This marks a record half-year sales result for the specialty retailer, driven by a combination of refreshed core product ranges, targeted marketing, and consistent retail execution.
Like-for-like sales rose 3.6%, with bricks-and-mortar stores contributing a 2.6% uplift and online sales surging 16.5% to $8.0 million, now representing 8.7% of total sales. The company’s focus on product rejuvenation, particularly its Signature range and the expanding Bath & Body category, has resonated well with younger demographics and male shoppers, broadening its customer base.
AfterGlow Store Format and Network Optimization
The AfterGlow store format trial, launched in select locations including West Lakes (SA) and Macarthur Square (NSW), has proven successful with strong peak trading results. Encouraged by these outcomes, Dusk plans to expand this elevated store design across its network, including mini-refurbishments to priority stores to align with the refreshed brand experience.
Operationally, the group is actively reshaping its store portfolio, with plans to close seven underperforming stores during the second half of FY26 while opening two new locations. This strategic pruning aims to improve overall earnings and enhance sales productivity per square metre.
Financial Performance and Dividend
Underlying EBIT rose 3.5% to $14.3 million despite a competitive promotional environment and increased costs associated with new stores and pop-up locations. The company maintained tight control over its cost of doing business, with marketing expenses reduced by 8.5% while sales increased, reflecting improved return on investment.
Dusk’s balance sheet remains robust, closing the half with $35.8 million in cash and no debt. The board declared a fully franked interim dividend of 4.0 cents per share, down slightly from 5.0 cents in the prior year, signaling confidence in ongoing cash flow generation.
Strategic Outlook and International Ambitions
Looking ahead, Dusk is focused on sustaining momentum through product innovation, loyalty program relaunch, and enhanced digital marketing. The company is also scaling back its New Zealand operations to concentrate resources on its core Australian market, where it continues to build a more predictable and profitable product mix.
International expansion remains a strategic option but is contingent on sustained domestic performance and operational improvements. The group plans a disciplined, phased approach to potential overseas markets, including launching an international e-commerce platform and piloting select markets in 2027.
Bottom Line?
Dusk’s strategic reset gains traction, but watch how store closures and loyalty relaunch shape future growth.
Questions in the middle?
- How will the planned store closures impact overall sales and profitability in 2H FY26?
- What are the key metrics guiding the success of the AfterGlow store format expansion?
- When will the refreshed loyalty program launch, and how will it affect customer retention and spend?