That's right, the general consensus is that the FY21 sales and earnings growth is attributed to COVID "stay at home" thematics.
What people don't realise however is that Dusk has actually been consistently growing like-for-like sales and gross margin $ for over 4 years now. In fact, they are now heading into their 18th quarter of consecutive growth.
I'd like to also highlight that management have mentioned that their in-store data shows that foot traffic is still not back at 2019 levels.
With Dusk now likely entering into the international market very soon (NZ and UK), and more foot traffic expected over the next year as more people are vaccinated and confident to shop again, and not to mention continued online penetration - Dusk will be very well set up for continued growth in FY22 and the proceeding years to come.
Based on this, the price to intrinsic value gap remains large, and it can be expected that the price will begin to close in on this once FY21 results are out, and again following Q1 FY22 results. This is when fund managers and others will be able to appreciate Dusk's real growth and more accurately forecast future performance.
Well done for reading between the lines mate.
DSK Price at posting:
$3.77 Sentiment: Buy Disclosure: Held
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