• Sales up 12.3% to $87.4m
• Online sales up 68%, now 7.9% of total
• Gross profit margin improved to 65.1%

Dusk Group Ltd (ASX: DSK) has reported its half-year results for the 26 weeks ending 29 December 2024. The company achieved sales of $87.4m, up 12.3% on the prior corresponding period (pcp). Like-for-like (LFL) sales grew 10.6%, with stores up 7.4% and online up 68.0%. Gross profit increased 13.4% to $56.9m, with the gross profit rate improving 62 basis points to 65.1% despite headwinds from currency volatility and higher freight costs. Pro forma EBIT rose 20.0% to $13.8m. The company ended the period with net cash of $38.5m and no debt. Dusk declared an interim dividend of 5 cents per share and a special dividend of 5 cents per share, both fully franked. The CEO highlighted the successful execution of the product-led turnaround strategy, the strong digital performance, and the positive momentum from the critical Christmas trading period. The company is focused on continuing this positive performance through the remainder of FY25 and beyond.

For the first 8 weeks of 2H FY25, total sales grew 3.7% and LFL sales grew 4.0% compared to the prior corresponding period. Trading margin remains in line with the prior year.

Dusk is optimistic about the upcoming events with Easter and Mother's Day trade, and expects to open one store and close two stores by the end of FY25. The company's hedging policy continues to mitigate FX risk in 2H FY25.