• Delivered a solid sales uplift underpinned by product improvements, targeted marketing and retail execution
• Improved digital marketing and curated offers driving online sales growth
• Member exclusive offers driving member sales growth of +24% vs pcp

Dusk Group Ltd (ASX:DSK) reported a strong 1H FY26 performance, delivering record sales of $91.8m, up 5.1% vs pcp, and underlying EBIT of $14.3m, up 3.5%. Key highlights include:- Total sales up 5.1%, with like-for-like sales up 3.6% (stores +2.6%, online +16.5%)- Online sales of $8.0m, up 16.5%, with online penetration of 8.7%- Member sales grew 24% vs pcp, now 57% of total sales, driven by member-exclusive offers and a refreshed loyalty program- Average transaction value up 8%, with members and non-members both showing growth- Gross profit margin slightly ahead vs pcp, despite promotional headwinds, offset by efficiency gains in freight and logistics- Cost of doing business tightly managed, up 5.9%, including costs for new stores and pop-ups- Strong balance sheet with $35.8m in cash and no debt, supporting future growth initiativesThe company continues to execute its transformation strategy, with a focus on customer experience, brand relevance and operational excellence. Key initiatives include product rejuvenation, loyalty program relaunch, store format rollout, and supply chain optimisation. The company is also evaluating a disciplined, phased approach to international expansion, contingent on sustained domestic performance improvement.

For 2H FY26, the company expects gross margin to be in line with the prior corresponding period. The company plans to close 7 stores and open 2 new stores, improving overall earnings.

The company has had a pleasing start to Q3 with double-digit sales growth, driven by improved stock availability. The company continues to innovate and refresh its product range, including launching a new Australian-made core range and a refreshed Signature range. The momentum is supported by enhanced product, the performance of the new AfterGlow store format, and improved marketing and in-store service.