Accent Group is accelerating its store network expansion program after profits fell by 40 per cent in the first half of the financial year.

A 5.7 per cent lift in sales year-on-year to $810.5 million couldn’t negate a 40.5 per cent drop in net profit after tax for the group. Sales growth was observed, with like-for-like retail sales rising by 0.9 per cent and wholesale sales increasing by 9.4 per cent.

With Sports Direct, Hoka, The Athlete’s Foot and Lacoste in its portfolio, Accent Group now boasts 898 stores.

The group launched Sports Direct and Lacoste stores in Australia as part of its 27 additions to its network in the half-year. Both Skechers and Lifestyle Brands led the way with nine openings in the period. Only Hype DC did not open a new store.

As a result of ongoing “efficiency and strategic reviews,” Accent closed 21 stores during the period. The group said that, due to negotiations on around 200 lease renewals by 2027, some stores will remain closed where sustainable lease terms cannot be agreed.

The most significant driver of store closures was the closure of 16 Glue Store locations, which will have a further seven locations shuttered by the end of the financial year. Accent Group is wrapping up all Glue Store operations as the company looks to reset through Sports Direct.

Through its partnership with the UK-based Fraser Group, Accent is looking to expand Sports Direct’s presence in Australia to “at least” 50 stores over the next six years, adding the possibility of more than 100 stores eventually.

Across its portfolio, Accent Group said it is looking to open a further 40 stores this financial year.