Premium home fragrance retailer Dusk Group says an “increasingly cautious consumer environment” has impacted sales growth.

In a trading update citing unaudited accounts, the business said it expects sales to be in the range of $135 million – $137 million while pro forma EBIT will be around $16 million – $17 million.

Group CEO and MD, Peter King, said the mounting cost of living has impacted the disposable income levels of customers.

“Our Mother’s Day period was softer than anticipated, which compounds the trend of subdued and volatile sales observed over the course of this calendar year so far.

“Although foot traffic in shopping centres has remained soft, the strength of our store teams was once again illustrated by consistently high sales conversion rates in our stores.”

He added the business is taking “necessary action” to mitigate the financial impact of the current trading environment as consumers experience significant constraints on their household budgets.

Despite challenges, the company expects to finish this financial year with 145 stores – an increase of 13 year on year.

Last month, the company appointed Vlad Yakubson as the new CEO and MD of the business. He will commence the role no later than October 31.