Specialty home fragrance retailer dusk Group Ltd has flagged a year of modest growth, forecasting higher sales and earnings in financial year 2025 (FY25), despite some pressure on gross margins. The company anticipates total sales between A$137 million and A$139 million, up from A$126.7 million in FY24, with underlying earnings before interest and tax (EBIT) expected to finish in the range of A$7 million to A$8 million, compared to A$6.2 million in the prior year.
Gross margin is expected to fall by 50 to 100 basis points from FY24's 64.3%, reflecting increased input costs and strategic investments. Nonetheless, dusk projects net inventory to remain stable at A$15 million to A$17 million and expects to close the financial year with a strong net cash balance of A$18 million to A$20 million.
Chief Executive Officer and Managing Director Vlad Yakubson described FY25 as a pivotal year, underlining the business’s progress and laying the groundwork for broader changes in FY26. “We are excited by the improvements we are planning for FY26, as we deliver refreshed core product ranges, exciting seasonal and fashion product and further category expansion,” Yakubson said.
The company attributes its performance to a product-led turnaround strategy and successful seasonal campaigns such as Mother’s Day.
Management reiterated that its omni-channel model and in-house product design remain central to customer engagement and brand differentiation.