Accent Group's 2024 AGM: Sales Growth and Future Expansion
AX1 (AX1) Share Update November 2024 Wednesday 20th
Accent Group Reports Strong FY24 Sales and Expansion Plans
Accent Group Limited (ASX: AX1) has reported a robust financial performance for FY24, with total sales reaching $1.61 billion, alongside ambitious plans for future growth and expansion.
Instant Summary:
- Total sales of $1.61 billion in FY24.
- Net profit after tax of $59.5 million.
- Expansion with 93 new stores opened in FY24.
- Contactable customer base exceeds 10 million.
- Focus on sustainability and ESG commitments.
FY24 Financial Performance
Accent Group has achieved total sales of $1.61 billion for the financial year 2024, demonstrating resilience in a challenging consumer environment. The company reported a net profit after tax of $59.5 million, reflecting its strong market position and brand strength.
The Group's owned sales, excluding The Athlete’s Foot franchisees, reached $1.43 billion, marking a 2.7% increase from the previous year. However, EBIT was down by 20.5% to $110.4 million, with a net profit after tax decrease of 32.9% compared to the prior year.
Expansion and Growth Strategy
Accent Group continues to focus on expansion, having opened 93 new stores across Australia and New Zealand in FY24, bringing the total to 895 stores. The Group's contactable customer base has grown by 400,000 to over 10.2 million, enhancing its market reach.
The company is committed to its growth strategy, investing in digital capabilities, expanding its store network, and focusing on its diverse brand portfolio, including successful banners like Nude Lucy, Stylerunner, and Skechers.
Sustainability and ESG Initiatives
Accent Group remains dedicated to sustainability, guided by its ESG framework. In FY24, the company completed 600 safety audits and launched the Accent Group Leadership Academy to foster leadership development.
The Group is also committed to environmental stewardship, with initiatives like the Treadlightly recycling program, which has collected over 51,000 pairs of shoes for recycling.
The robust sales figures and strategic expansion plans are likely to positively impact Accent Group's stock, as investors may view the company's growth trajectory favorably. However, the decline in EBIT and net profit could temper enthusiasm, highlighting the need for careful cost management.
Investor Reaction:
Analysts may view Accent Group's strong sales growth and expansion plans positively, but the decline in profitability could raise concerns about operational efficiencies. The focus on sustainability and customer engagement may bolster long-term investor confidence.
Conclusion:
Accent Group's strong sales performance and strategic growth plans position it well for future success. Investors should monitor the company's cost management strategies and expansion progress to assess long-term potential.