Highlights
- Accent Group is a New Zealand-based apparel and footwear business in the performance and active lifestyle sector
- In FY23, the company reported a 39.6% YoY surge in EBITDA to AUD 213.57 million and a 181% YoY increase in NPAT to AUD 88.65 million
- Today, AX1 shares closed 1.098% higher at AUD 1.840 apiece
Established in 1988, Accent Group Limited (ASX: AX1) is based in New Zealand. The company operates and owns a range of apparel and footwear businesses in the active and performance lifestyle sectors.
During the financial year 2023 (FY23), the company reported group sales of AUD 1.566 billion, an increase of around 23.7% YoY. The period witnessed around 39.6% YoY rise in EBITDA to AUD 213.57 million.
During the reported period, the company opened around 80 new stores and transitioned 15 stores from discontinued to existing brands.
Key drivers for retail sector
A report by the Australian Bureau of Statistics highlighted that the retail trade turnover increased by 0.9% month-over-month and 2.0% on prior corresponding period (pcp) in September 2023. During the reported period, the retail trade turnover for household goods retailing and department stores surged by 1.7% and 1.5% MoM, respectively. The clothing, footwear and personal accessory retailing turnover surged by 0.3% MoM.
Key challenges
Retail trade’s gross value added decreased by 0.1% QoQ, because of continuous ease in spending on food retailing and weakness in household goods retailing.
Outlook
For the current financial year (FY24), the company targets to open a minimum of 50 new stores and also expects growth from existing and new distributed brands.
Moreover, in FY24, the company intends to focus on prudent inventory management and product innovation to leverage clean stock levels.
Share performance of AX1
AX1 shares closed 1.098% higher at AUD 1.840 apiece on 30 October 2023 with a market capitalisation of AUD 1.02 billion. Including today’s gain, AX1 shares have appreciated 23.49% in the past 12 months and increased by 6.36% in the last three months.
The 52-week high of AX1 is AUD 2.62 apiece, recorded on 19 April 2023, and the 52-week low is AUD 1.465 apiece, recorded on 10 November 2022.
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 30 October 2023. The reference data in this report has been partly sourced from REFINITIV.
Disclaimer
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