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DSK - Dusk Group (1 Viewer)

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dusk is an Australian specialty retailer of Home Fragrance Products, offering a range of dusk branded premium products at competitive prices from its physical stores and online store. dusk currently has 115 Company owned and operated stores across Australia, with a target of approximately 160 stores by 2024 in Australasia, including a growing online presence via its website www.dusk.com.au.

dusk operates in the broader Australian retail industry and is an omni-channel specialty retailer focused on the Home Fragrance Market. In addition to participating in the Home Fragrance Market, dusk also operates in the gift products market which includes a range of other competing product segments (including flowers, chocolate, perfume and wine, together with other homewares and personal goods items).

It is anticipated that DSK will list on the ASX during November 2020.

 

Dona Ferentes

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dusk is pleased to confirm that outstanding sales and earnings growth have continued across the key trading months of November and December. dusk has also 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 results based on actual sales, dusk provides earnings guidance in relation to its first half FY21 result as per the below:


(Actual) Sales .. $90.0 million to $90.5 million ( H1 FY21 Guidance) ... from $58.7 million (H1 FY20)
EBIT ................. $26.0 million to $27.0 million ( H1 FY21 Guidance) ..... from $9.7 million (H1 FY20)

Net cash as at the end of the first half FY21 will be approximately $33.5 million.

raised capital in Nov @ $2.00 a share. Issued 35mill shares; total on issue now 62.3mill

Since IPO; daily
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galumay

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I was doing some research on DSK last week @Dona Ferentes - the financials look very good and its pretty cheap on any metric I checked. The thing that held me back from putting any capital into the business is the very narrow, niche market which has basically no competitive advantage for DSK. I also checked for reviews from customers and they were nearly universally negative! Its hard to believe there is such a large market for candles & infusers, but they already have a big chunk of it, there are a couple of other big players according to my wife, so growth would seem to be limited.

When I dug a bit deeper it looks like they have got away with getting their product made very cheaply in China and then selling with very high gross margins - no pricing power there, so very exposed to competitors under cutting them on price.

In the end I couldn't really develop enough conviction about the future prospects of the business to be an investor.
 

Dona Ferentes

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I was doing some research on DSK last week @Dona Ferentes - the financials look very good and its pretty cheap on any metric I checked. The thing that held me back from putting any capital into the business is the very narrow, niche market which has basically no competitive advantage for DSK. I also checked for reviews from customers and they were nearly universally negative! Its hard to believe there is such a large market for candles & infusers, but they already have a big chunk of it, there are a couple of other big players according to my wife, so growth would seem to be limited.

When I dug a bit deeper it looks like they have got away with getting their product made very cheaply in China and then selling with very high gross margins - no pricing power there, so very exposed to competitors under cutting them on price.

In the end I couldn't really develop enough conviction about the future prospects of the business to be an investor.
their outlets tend to be in shopping centres. And the discretionary Xmas spend would be a large component of sales. I'll give it a miss. Thx for your views.

Any candles, we get from the $2 shop
 
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Dusk products are really good and often available after a 40 pc discount. So I wonder if the real prices are the ones available after the discount.
I do not hold this and fail to understand wherefrom the money comes from, as there is never more than one customer at the shop. The volume of purchase for most hardly goes beyond $120 on an average per person.
Simply Wallet website shows under various charting that it is an underpriced great stock.
I do not know how?
I do not understand the same way Shaver Group shops are hardly visited by customers. So is the Lovisa shops and their prices.
But stock prices are on a rising trend.
Why the directors and fundies are selling so heavily ??

 

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