The Dusk Group Ltd (ASX: DSK) share price finished Thursday's market session lower after the company provided a trading update.
At the closing bell, the specialty retailer's shares ended at $3.03 a pop, down 3.19%.
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Dusk reports fall in sales
Investors drove the Dusk share price lower following the company's late afternoon market release.
For the 19 weeks ending 7 November, Dusk advised its sales have been impacted as a result of store closures. In particular, New South Wales, Victoria, and the Australian Capital Territory were forced shut by state governments due to COVID-19. This effectively reduced the number of store trading days by around 33% over the period.
Total year-to-date unaudited sales have declined by 22.9% when compared to FY21. It is estimated this metric will be between $10 million and $11 million below the prior corresponding period. In addition, pro-forma earnings before interest, tax, depreciation and, amortisation (EBITDA) will also likely be down around $6 million to $7 million.
Total like-for-like (LFL) sales fell 8.5% when measured against last financial year's performance. Although, since the reopening of all stores, both states and the territory have delivered positive LFL sales growth.
Another positive is that online sales have continued to surge, achieving a 19% lift versus FY21.
On a year-to-date basis, the company noted that gross margins have increased on the same period in FY21. Elevated freight costs have been offset by a favourable foreign currency position and higher retail prices in June 2021.
The results haven't impressed investors, judging by the fall in the Dusk share price today. However, Dusk CEO Peter King was optimistic. He commented:
We anticipate that customers will be encouraged to shop in stores in the lead-up to Christmas due to pent-up demand, combined with delays in deliveries for online purchases.
Having opened 6 new stores so far in FY22, we now have 128 stores (including online). With all stores now open and stock levels as planned, we are ready to capitalise upon the key Christmas trading period.
Dusk share price summary
Despite today disappointing results, the Dusk share price has zoomed upwards by 50% in 2021. However, when factoring in the last 12 months, its shares are up by 89%.
Based on today's price, Dusk commands a market capitalisation of roughly $194.9 million and has approximately 62.3 million shares outstanding.
