Dusk Group Ltd (ASX:DSK) (FY24) Earnings Call Highlights: Navigating Challenges with Strategic ...

In This Article:

  • Total Sales: $126.7 million, down 7.9% on PCP.

  • Like-for-Like Sales: Down 12.1% on PCP.

  • Gross Profit: $81.5 million, down 7.5%.

  • Gross Profit Percentage: 64.3%, up 20 basis points on PCP.

  • Pro Forma EBIT: $6.2 million, compared to $16.5 million in FY23.

  • Inventory: $15.5 million, slightly up on PCP.

  • Net Cash Flows: $20.8 million, compared to $16 million at the end of FY23.

  • Dividend: Total dividends for FY24 at $0.065 per share.

  • Store Count: 149 stores, up from 145 at the end of FY23.

  • Online Sales: $7.2 million, down 3.4% on PCP.

  • Online Sales Penetration: 5.7% in FY24, 6.4% in the second half.

  • Active Members: 674,000 at the end of FY24, with member sales representing 57% of total sales.

  • Average Transaction Value (ATV): $56 for members, $44 for non-members.

  • Cost of Doing Business (CODB): $71.4 million, up 5.4% on PCP.

  • Closing Cash: $20.8 million, up $4.8 million on PCP, with no debt.

Release Date: August 29, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Dusk Group Ltd (ASX:DSK) reported a strong start to FY25 with total sales for the first eight weeks 16% higher on PCP and 12.1% on a like-for-like basis.

  • The company has successfully implemented strategic initiatives such as product rejuvenation and disciplined promotional activity, leading to improved sales performance in the second half of FY24.

  • Dusk Group Ltd (ASX:DSK) maintained a strong financial position with closing cash of $20.8 million and no debt.

  • The company has launched a website upgrade and a new approach to digital marketing, enhancing the omni-channel experience.

  • Dusk Group Ltd (ASX:DSK) plans to increase customer frequency and new customer acquisition by expanding into new product categories and leveraging social media and digital marketing channels.

Negative Points

  • Total sales for FY24 were $126.7 million, down 7.9% from the prior corresponding period.

  • Like-for-like sales declined by 12.1% in FY24, with stores down 12.6% and online down 3.4%.

  • Pro forma EBIT decreased significantly to $6.2 million from $16.5 million in FY23.

  • The cost of doing business increased by 5.4% on PCP, driven by new store openings and significant regulatory wage increases.

  • Membership sales declined by 8% due to an increase in membership fees, which was later reverted.

Q & A Highlights

Q: The turnaround in sales in the fourth quarter and year-to-date, is it due to internal efforts or macro improvements? A: Vladislav Yakubson, CEO: The improvement is largely due to internal efforts, focusing on product rejuvenation and online channel optimization. The macro environment remains challenging, but our strategies have led to positive sales growth.