Accent Group profits increase but trading remains challenging

(Source: platypusshoes/Facebook)

Footwear retailer Accent Group says it has “returned” to long-term profit growth in FY23, but remains cautious as trading conditions remain challenging.

The company owns and operates retail businesses such as Platypus, The Athlete’s Foot, Subtype, The Trybe, HypeDC, Pivot and 4 Workers, and distributes global brands including Dr Martens, Skechers, Vans and Merrell.

For the year to July 2, the total sales grew 24 per cent to $1.57 billion with a tax-paid profit of $88.7 million and EBIT of $138.8 million.

Online sales achieved $260.5 million and contributed 19.1 per cent of total retail sales while like-for-like sales for the year grew 10.2 per cent.

Strong sales were achieved across all major banners including Platypus, Hype DC, Vans, Skechers, The Athlete’s Foot and Dr Martens.

The group opened 80 new stores and closed 21 stores where required rent outcomes could not be achieved and transitioned 15 stores from discontinued into continuing brands. In FY24, the business plans to open 50 new stores.

Nude Lacy has become the fastest-growing women’s lifestyle apparel brand with 22 new store openings.

Accent Group CEO, Daniel Agostinelli, said there is “ongoing uncertainty” in the economic outlook with the business registering softer sales in apparel than in footwear categories in May and June.

“We continue to be pleased with the trading strength in a number of our banners where lower prior year comps and product innovation have driven positive LFL retail growth.

“The Accent team is focused on executing our plan for FY24 including driving new product innovation, tight management of inventory leveraging clean stock levels coming out of FY23, opening at least 50 new stores, growth from our existing and new distributed brands and a continued drive on cost efficiency and gross margin improvement.”

For the first seven weeks of FY24, LFL retail sales were down 1.8 per cent while digital sales were up 20 per cent when compared to the same corresponding period last year.

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