dusk Eyes Brighter FY25 with Sales Growth Amid Margin Squeeze | ASX300 Retail Stock in Focus

May 16, 2025 10:58 AM AEST | By Team Kalkine Media
 dusk Eyes Brighter FY25 with Sales Growth Amid Margin Squeeze | ASX300 Retail Stock in Focus
Image source: shutterstock

Highlights 

  • FY25 sales and earnings guided higher by dusk despite margin pressure 
  • Strategic product refresh and omni-channel push set the tone for FY26 
  • dusk aims for stable inventory and strong net cash position 

Specialty home fragrance retailer dusk Group Ltd (ASX:DSK) has set the tone for a transitional but forward-looking FY25, with guidance pointing to moderate growth in both sales and earnings. While margin pressure remains a short-term challenge, the company is focusing on long-term brand positioning and a strategic product overhaul heading into FY26. 

For the financial year 2025 (FY25), dusk is forecasting total revenue between A$137 million and A$139 million. This represents an increase from the A$126.7 million recorded in FY24. Underlying earnings before interest and tax (EBIT) are also expected to rise to a range of A$7 million to A$8 million, up from A$6.2 million in the prior period. 

However, the growth outlook comes with a caveat—gross margins are expected to dip by 50 to 100 basis points from FY24’s 64.3%. This reduction is attributed to elevated input costs and investments in strategic initiatives, such as product refreshes and expanded offerings. Still, dusk anticipates a stable inventory position, forecasting net inventory to hold between A$15 million and A$17 million. Meanwhile, the company projects a healthy net cash balance of A$18 million to A$20 million by year-end. 

CEO and Managing Director Vlad Yakubson highlighted FY25 as a “pivotal year” that sets the stage for meaningful transformation 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,” he said. 

The leadership’s strategy leans heavily into dusk’s omni-channel model and in-house product design capabilities, which remain integral to customer engagement and brand differentiation. Seasonal campaigns, such as Mother’s Day promotions, have reinforced the brand’s resonance with core demographics and are central to its continued traction in the competitive retail landscape. 

dusk is a constituent of the broader ASX300 index, placing it among Australia’s top 300 listed companies by market capitalisation. Investors keeping an eye on ASX300 index movements may find dusk’s evolving retail strategy and capital strength of interest. 

Additionally, dusk’s performance contributes to broader trends among ASX dividend stocks, given its consistent profitability and cash generation potential, though income distributions were not detailed in the FY25 outlook. 

As dusk moves through this strategic transition, attention will remain on how product innovation and category expansion influence both top-line growth and margin resilience. 


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