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Accent Group hit fourth year of record profit, chart overseas expansion

Accent Group’s upmarket sneaker chain Subtype. Image: Supplied

Accent Group’s recent spate of acquisitions has done little to dampen a strong FY21 result, with the footwear giant delivering earnings growth despite spending millions on picking up new brands, and marking the group’s fourth consecutive year of record profits.

Sales across the group’s network of businesses, which now include Hype, Platypus, Subtype, Athlete’s Foot, The Trybe, Crèmm, and Pivot, as well as relative newcomers 4Workers, Stylerunner, Next Athleisure and Glue Store, hit $1.14 billion – a 19.9 per cent jump on a Covid-19 impacted FY20.

Earnings before interest, taxes, depreciation and amortisation jumped 19.3 per cent to $242 million, leading net profit to hit $76.9 million, up 38.6 per cent.

Chief executive Daniel Agostinelli said, given the fact the industry has been hit by 14 separate lockdowns throughout the year, it was a result the team at Accent should be proud of.

“The group’s continued focus on [our loyalty customers], vertical and virtual, along with our integrated digital and store operating model, has delivered another record profit,” Agostinelli said.

“The acquisition of the Glue Store business to form our new Accent Lifestyle division was a key highlight for the year and I couldn’t be more pleased with the quality of the business and the progress that has been made in the first 90 days.”

And though much of the country remains in lockdown, with Accent Group’s FY21-sales-to-date down 16 per cent (though, predictably, online sales jumped 66.7 per cent), the business continues to plan for growth.

The business sees opportunities to grow Glue Store, as well as the Stylerunner and Exie brands, into New Zealand and other markets in the coming years.

Newly launched Pivot will hit 15 stores by the end of 2022, while The Trybe will launch additional stores in the first half of the new financial year. Glue Store’s network is aimed to hit 60 stores by the end of 2023, though a number of leases are currently in renegotiation and may be closed based on the outcome, while Stylerunner will have 20 stores trading by early 2022 and 40 by Christmas that year.

“In the current environment our digital sales are growing strongly and we have confidence that when stores can reopen, we are well positioned to serve our customers and to continue to grow our position in the market,” Agostinelli said.

“Our portfolio of world class owned and distributed brands, integrated digital capability and large store network are core assets for the group and position the company well for strong growth into the future.”

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