- 01LFL sales rose 7.2% in FY27’s first 15 weeks.
- 02Gross margin dollars grew 6.9%; H1 margin forecast higher.
- 03Dusk plans 3–5 South African stores in 2027.
Dusk Group (ASX: DSK) has lifted like-for-like (LFL) sales 7.2% in the first 15 weeks of the 2027 financial year, extending the Australian home fragrance retailer’s trading momentum despite operating six fewer stores than a year earlier.
Total sales rose 5.7% over the corresponding period, while gross margin dollars increased 6.9% as improved core product availability and refreshed ranges supported stronger store productivity.
The group expects its gross margin for the first half of FY27 to exceed the previous corresponding period, although margin growth has moderated since its August trading update amid September’s mid-season promotional activity.
In Australia, Dusk has opened two stores and closed one so far in FY27, with two additional closures planned for the second quarter as it prepares for Christmas trading.
Alongside the domestic improvement, Dusk is preparing a limited South African market entry in the second half of FY27, using its AfterGlow store format to test demand before considering wider expansion.
Momentum in Core Ranges
The latest performance follows record sales of $148.9 million in the 2026 financial year, an 8.4% increase accompanied by 7.8% LFL growth and online revenue of $12.7m.
FY26 gross profit increased 10.1% to $96.2m, with gross margin reaching 64.6%, while underlying EBIT advanced 15.6% to $8.9m and underlying net profit after tax reached $6.6m.
The company finished the year with $18.3m in cash, remaining debt-free after investment in inventory and growth initiatives.
A renewed Signature Collection recorded double-digit sales growth, while Bath & Body increased its share of revenue to 6.4%, supporting a shift from seasonal products towards replenishable ranges.
The group plans to expand Bath & Body beyond 10% of sales within 24 months and launch a core unisex youth range in November 2026.
New Flagship Format
AfterGlow has been introduced across multiple Australian locations, with the West Lakes and Macarthur stores recording 22% LFL sales growth and a new flagship format recently opening at Penrith.
Dusk intends to extend the concept to more than 10 new or refurbished stores during FY27, while continuing to close underperforming locations and reallocate capital to stronger sites.
The retailer ended FY26 with 144 stores, including two online stores, after a net reduction of six locations, and traded through 24 temporary pop-up stores during the year.
Its Dusk Rewards program reached 768,000 active members, with member sales rising 13% to $88m and accounting for 59% of total revenue.
Measured South African Entry
The planned South African launch will begin with three to five stores across no more than two metropolitan areas, alongside an online offering, with the initial rollout scheduled for calendar 2027.
The retailer sees the market as an opportunity to test customer acceptance and store economics using the enhanced AfterGlow format without committing to an extensive network at the outset.
“South Africa offers attractive retail fundamentals, established shopping-centre infrastructure, favourable demographics, and a strong track record for Australian specialty retailers,” managing director Vlad Yakubson said.
“Lower establishment and occupancy costs also support attractive potential returns on invested capital.”
Further international expansion will depend on the performance of the Australian business and the returns demonstrated by the initial South African locations.
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