This article first appeared on GuruFocus .
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Total Sales:$91.8 million, up 5.1% vs pcp.
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Like-for-Like Sales:Increased by 3.6%.
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Online Sales:$8 million, up 16.5%, with online penetration at 8.7% of sales.
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Gross Profit:$59.9 million, up 5.1%.
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Gross Margin:Improved to 65.2%, up 3 basis points on PCP.
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Underlying EBIT:$14.3 million, up 3.5%.
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Cash Position:$35.8 million, with no debt.
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EPS:$0.161 per share, up from $0.153 per share.
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Interim Dividend:$0.04 per share, fully franked.
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Active Members:718,000, a 9% increase vs pcp.
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Member Sales:$52 million, up 24%, representing 57% of total sales.
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Average Transaction Value (ATV):Member ATV increased 9% to $61; Total ATV up 8% to $54.
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Store Network Changes:Closed 4 underperforming stores, with plans to close 3 more and open 2 new stores in the second half.
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Warning! GuruFocus has detected 5 Warning Signs with BOM:532493.
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Release Date: February 13, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Dusk Group Ltd ( ASX:DSK ) achieved a record first half for total and online sales, with total sales reaching $91.8 million, up 5.1% compared to the previous corresponding period.
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Online sales increased by 16.5% to $8 million, with online penetration rising to 8.7% of total sales.
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The company reported a gross profit of $59.9 million, up 5.1%, with a gross margin improvement to 65.2%.
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The AfterGlow store format has been successful, with plans to expand it across the network, showing like-for-like growth of 24% in reopened locations.
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Dusk Rewards program saw a 9% increase in active members, with member sales representing 57% of the total sales mix, the highest in the last five years.
Negative Points
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Cash reserves decreased to $35.8 million from $38.5 million due to a special dividend paid in the last 12 months.
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Cost of Doing Business (CODB) increased by 5.9%, slightly outpacing sales growth, due to new store openings and the refreshed Signature core range changeover.
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The company closed four underperforming stores in the first six weeks of the second half and plans to close three more, indicating challenges in certain locations.
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Despite strong first-half results, the company anticipates maintaining gross margins in line with the prior period, suggesting limited margin expansion in the near term.
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The dividend was reduced to $0.04 per share, which may signal caution or a focus on reinvestment despite a strong cash position.
Q & A Highlights
Q: Could you provide more details on the 17.8% sales growth in the first 6 weeks of the second half? Are there specific categories or promotions driving this growth, and how is the performance across different states? A: Vladislav Yakubson, CEO: The 17.8% sales growth is largely due to improved stock availability across our core product range, particularly the Signature range. Our promotional calendar is similar to last year, but better stock levels have been a significant driver. Demand for our Christmas range, designed as year-round gifting items, also contributed. The growth is evenly spread across states, with strong performance in Western Australia and New South Wales.
Q: Can you explain the guidance for flat gross margins despite clearing the old Signature range? A: Gordon Squire, CFO: Freight and logistics efficiencies have helped normalize margins. We are hopeful for good sell-through of new and fashion products by the end of June, with efficiency gains offsetting any margin pressures.
Q: How has the loyalty program and CRM update impacted member sales and margins? A: Gordon Squire, CFO: The CRM replatforming is still in early stages, but we're seeing positive gains. Vladislav Yakubson, CEO: Exclusive promotions for members are driving repeat purchases. The new CRM platform allows more efficient targeting, reducing costs and improving customer engagement.
Q: How did the Pop Up stores perform during the peak trading period, and what improvements are planned for next year? A: Vladislav Yakubson, CEO: Pop Ups have been successful in broadening brand reach and capturing new customers. Product targeting different customer cohorts has been effective. Store execution and visual merchandising have improved, and we plan to continue refining these areas.
Q: What are the plans for the AfterGlow store format and international expansion? A: Vladislav Yakubson, CEO: We're conducting due diligence for international expansion, but our focus remains on domestic growth. Gordon Squire, CFO: The AfterGlow format is proven successful, and we plan to roll out more stores, balancing sustainable profit growth with strategic expansion.
Q: Can you discuss the impact of the Australian-Made product launch on margins and foreign sourcing exposure? A: Vladislav Yakubson, CEO: The Australian-Made range is expected to have a margin profile similar to other products, with savings in supply chain efficiencies offsetting production costs. We have diverse supply partners, and the local range mitigates some risks.
Q: How does the online sales margin compare to in-store sales, given the 16.5% growth in online sales? A: Gordon Squire, CFO: Online sales have a slightly lower margin than in-store sales due to the wider SKU offering online, but the difference is not significant.
Q: How does the stronger Australian dollar impact the business, and have recent interest rate changes affected consumer behavior? A: Gordon Squire, CFO: A stronger Australian dollar is beneficial, with gains expected in the second half. Vladislav Yakubson, CEO: We focus on maintaining value propositions and price architecture to mitigate interest rate impacts, ensuring affordability and customer value.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
