Dusk sales drop as stores closed, but online growth cushions the blow
Australian specialty retailer Dusk, has reported poor sales based on unaudited management accounts for the first half of the financial year.
In a trading update, the company said sales fell 12 per cent to $80 million compared to $90.9 million in the first half of FY21 and $59.6 million in the first half of FY20.
On the other hand, online sales were up 4.3 per cent contributing 9.3 per cent of total sales. The pro forma earnings before interest and taxes is expected to be between $21-$21.5 million.
Sales were adversely impacted due to mandated store closures in NSW, Victoria and the ACT. The number of store trading days dropped by 24 per cent, costing the company 5483 trading days. Adding to this, foot traffic in stores was lower as shoppers began exercising caution due to rising Omicron cases all through December.
Inventory at the half was recorded at $19.6 million and six new stores were added taking the network to 128 stores including online.
Peter King, CEO said that he was pleased with the overall results. “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.”
The group is set to complete acquisition of Eroma by February 28 this year. The acquisition will contribute to group earnings in its first year of ownership and operations.