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Highlights

  • Accent Group is a digitally integrated retailer and distributor of footwear
  • In 1HFY24, AX1’s total sales decreased by 1.74% YoY, and net profit after tax reduced by 27.59% YoY
  • Blundy (Brett) has the maximum stake in AX1 with a shareholding of nearly 14.65%

Australia based Accent Group Limited (ASX: AX1) was established in 1988 as a wholesale distributor. Now, it owns and operates numerous footwear and apparel businesses in the active and performance lifestyle sectors. The company has more than 800 stores, over 35 online platforms and 34 brands across Australia and New Zealand.

In the first half of the financial year 2024 (1HFY24), AX1’s total sales, including franchisees, dropped by 1.74% YoY to AUD 810.9 million. During the reported period, net profit after tax stood at AUD 42.2 million, down 27.59% YoY and EBIT stood at AUD 72.36 million, down 20.63% YoY, driven by lower revenues.

In 1HFY24 the company opened 72 new stores.

Recent business update

On 23 February 2024, the company released trading update for the first month of second half. During the reported period, the company posted a 1.6% rise in total owned sales, and 5.6% growth in owned retail sales backed by the opening of new stores. In line with the previous half, the gross margin of AX1 remained higher than the previous year. Further, the company witnessed increased occupancy and store team costs in the second half of FY24.

During the first seven weeks of the second half, like-for-like retail sales dropped by 0.7% YoY.

Top 10 shareholders of AX1

The top 10 shareholders of AX1 have around 37.87% shareholding in the firm, while the top four have 27.38% shareholding. Blundy (Brett) and Thompson (Craig John) have the highest stakes in the firm with a shareholding of ~14.65% and 5.72%, respectively.

Outlook

To drive growth, the company is exploring numerous growth opportunities across its new businesses and core banners. In November 2023, the company started an exclusive loyalty partnership with Qantas, and this initiative is expected to increase customer visits and spending frequency.

In 2HFY24, the company targets to open 20 new stores, covering both new ventures and core banners, while over the coming 18 months, the company intends to open over 10 new stores for profitable brands such as Nude Lucy and Stylerunner.

Share performance of AX1

AX1 shares closed 0.842% higher at AUD 1.795 apiece on 21 May 2024 with a market cap of AUD 1.00 billion. In the last one year, AX1’s share price has dropped by 20.93%, while in the last nine months, it has declined by 8.88%.

The 52-week high of AX1 is AUD 2.38, recorded on 22 May 2023, and the 52-week low is AUD 1.51, recorded on 27 June 2023.

AX1 Daily Technical Chart, Source: REFINITIV

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 21 May 2024. The reference data in this report has been partly sourced from REFINITIV.