Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Search by ticker code:
Generic filters

Here’s why the Dusk (ASX:DSK) share price has jumped 10%

The Dusk Group Ltd (ASX: DSK) share price has jumped 10% after providing an update.

Dusk is a retailer of home fragrance products, with a range of Dusk branded products which are sold in both stores and online. The range is designed in-house and exclusive to Dusk. It boasts of being the leading Australian omni-channel retailer of home fragrance products like candles, ultrasonic diffusers, reed diffusers, essential oils and fragrance-related homewares.

What was in the update?

Dusk gave a trading update and earnings guidance for the first half of FY21.

It said that “outstanding” sales and earnings growth has continued across the key trading months of November and December. The company also said that it finished the half with a well-balanced inventory position, no drawn bank debt and significant surplus cash.

Based on unaudited financial results to the end of November and a preliminary estimate for December based on actual sales, Dusk said that FY21 first half sales is expected to be $90 million to $90.5 million, compared to $58.7 million of sales in the prior corresponding period. The EBIT (EBIT explained) guidance range for the first half of FY21 is $26 million to $27 million, up from $9.7 million compared to the first half of FY20.

Dusk also said that it had approximately $33.5 million of net cash at the end of the FY21 first half.

Management comments

Dusk CEO Peter King said: “The results delivered across the first half of FY21 are well ahead of the results delivered in the prior corresponding period despite a significant period of disrupted trade in Melbourne.

They build on the strong results delivered across the past three years and further demonstrate the success of our focused strategy and the ability of our team to execute, including in a volatile environment where agility has been key.”

Summary thoughts

This was clearly a strong result and I can see why Dusk shares are up so much, particularly with an increase of the EBIT margin of more than 10 percentage points to around 29%.

I don’t know how much growth Dusk can generate over the coming years, so it’s hard for me to price Dusk for its longer term potential. For me, there are other retail ASX growth shares that could be better like BWX Ltd (ASX: BWX) and City Chic Collective Ltd (ASX: CCX).

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report — or get it emailed to you — for FREE by CLICKING HERE NOW or the button below.

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.
Skip to content