Accent Group's FY2024 AGM Highlights Robust Growth and Strategic Expansion
AX1 (AX1) Share Update November 2024 Wednesday 20th
Accent Group Reports Strong Growth and Expansion in FY2024
Accent Group has revealed a robust performance for FY2024, showcasing significant growth in sales and strategic expansion across Australia and New Zealand.
Instant Summary:
- Total sales reached $1.61 billion, a 2.7% increase from FY23.
- 93 new stores opened across Australia and New Zealand in FY24.
- Contactable customer base grew to 10.2 million.
- Retail sales increased by 6.3%, with strong performance in key brands.
- Net Profit After Tax decreased by 32.9% to $59.53 million.
Financial Performance
Accent Group reported total sales of $1.61 billion for FY2024, marking a 2.7% increase from the previous year. This growth was driven by both retail and vertical owned brand sales, which saw a strong performance across key brands such as Skechers, Hype, and Stylerunner.
Despite the increase in sales, the company experienced a decrease in Net Profit After Tax, which fell by 32.9% to $59.53 million. This was attributed to increased costs and depreciation expenses.
Strategic Expansion
Accent Group continued its expansion strategy by opening 93 new stores across Australia and New Zealand. The company now operates 895 stores and 32 online sites, reinforcing its market presence in the region.
The company's contactable customer base grew to 10.2 million, reflecting a strong focus on customer engagement and loyalty programs. Notably, Accent launched a loyalty partnership with Qantas, enhancing customer incentives.
Operational Highlights
Accent Group's operational highlights included a 6.3% increase in retail sales, reaching $1.27 billion. The company also reported a significant rise in vertical owned brand sales, which contributed to 9% of total owned sales.
In addition, the company maintained a strong in-stock position and operational plans, preparing for the peak trading months of the year.
Accent Group's strong sales growth and strategic expansion are positive indicators for its future performance. However, the decrease in net profit may concern some investors, highlighting the need for cost management. The company's expansion and customer engagement strategies are likely to support long-term growth and enhance its market position.
Investor Reaction:
Analysts are likely to view Accent Group's sales growth and expansion positively, but may express concerns over the decline in net profit. The company's strategic initiatives, such as store openings and loyalty programs, are expected to bolster investor confidence in its growth trajectory.
Conclusion:
Investors should watch Accent Group's strategic execution and cost management closely in the coming months. The company's expansion efforts and customer engagement initiatives position it well for future growth, despite current profit challenges.