Premium home fragrance retailer Dusk Group plans to open new stores in Australia and New Zealand ahead of the Christmas trading period despite ongoing challenges.

In a trading update, the business says it expects total sales to finalise at around $138.3 million. Online sales have risen 2.9 per cent however total like-for-like sales are down by 10.5 per cent.

Group CEO and MD, Peter King, said: “We continue to drive product innovation and enhance our wellness offering which is increasingly valued by our customers.

“Our reputation as a gifting destination continued to grow beyond key gifting periods and seasonal celebrations reflecting our focus on targeted promotional activity and increased investment in gift sets.”

Despite losing 5483 trading days to government-mandated store closures during the last year, the retailer is set to open five new stores in Australia before Christmas and three in New Zealand in September and October.

King said Dusk is well placed to manage inventory inflows ahead of its peak trading period.