- Dusk Group (DSK) has seen its half yearly sales tumble 12 per cent after government COVID-19 mandates forced store closures across New South Wales, Victoria and ACT
- Sales came in at $80 million after the company lost 24 per cent of trading days over the first half period
- However, online sales pushed 2.8 per cent higher to $7.7 million and contributed to 9.7 per cent of total sales
- Pro forma EBITDA fell 22.9 per cent to $21.33 million with net cash at the end of the period sitting at $33.3 million
- Shares are trading 5 per cent lower at $2.46
Dusk Group (DSK) has seen its half yearly sales tumble 12 per cent after government mandates forced store closures across New South Wales, Victoria and ACT.
Sales came in at $80 million after the company lost 24 per cent of trading days over the period.
Even with no forced closures, foot traffic was lower due to shoppers exercising COVID-19 caution.
However, online sales pushed 2.8 per cent higher to $7.7 million and contributed to 9.7 per cent of total sales.
The company’s average transaction value grew by 5.8 per cent to $57, which was driven by the shift to a higher priced Home Fragrance product.
Six new stores were opened in the half, with four more stores to be opened before Mother’s Day.
The period was also marked by disruptions in distributions locally and from international suppliers.
The company said inventory is now healthy but freight costs remain elevated.
Pro forma EBITDA fell 22.9 per cent to $21.33 million with net cash at the end of the period sitting at $33.3 million.
Dusk will pay a fully franked dividend of 10 cents per share.
Chief Executive Officer Peter King said he is pleased with the result considering the conditions.
“Given the circumstances faced during the half, there is much to be pleased about in the overall result delivered, especially having regard to the fact we cycled exceptional like for like sales growth from the prior corresponding period,” he said.
“We remain focused on our customer and strategic priorities, and have made tangible progress on our growth strategies, including continued store roll out in Australia, preparing to commence operations in New Zealand, and the acquisition of Eroma.”
Shares were trading 5 per cent lower at $2.46 each at 3:48 pm AEDT.