Accent Group, the retail, wholesaling and distribution company behind the likes of Glue Store, Hype DC, Stylerunner, The Athlete's Foot and Platypus, has reported its results for the full year ended 30 June 2024, posting a 2.7% lift in total sales to $1.61 billion.

However, in a challenging consumer market profitability was challenged, with earnings before interest and taxes (EBIT) down 20.5% to $110.4 million, and net profit after tax plunging 32.9% to $59.53 million.

"“In the context of a more challenging consumer environment, I am pleased with the performance of the Accent team. The Company remains focused on growth and return on investment for shareholders. Highlights for the year include the profit contribution of our newer banners including Nude Lucy, Stylerunner, HOKA and UGG along with continued strong performance in Skechers, The Athlete’s Foot (TAF), Hype DC and others," said Accent Group CEO, Daniel Agostinelli.

The company has more than 895 direct to consumer stores across Australia and New Zealand, including owned stores, franchise stores and websites. It also has exclusive brand distribution agreements in the ANZ market for 14 global brands including HOKA, Dr Martens, Sketchers, Timberland, UGG, Superga, Vans, and Herschel, with 1200 wholesale customers.

Ongoing evaluations of the performance of business units saw to the decision to exit 17 underperforming Glue stores, as well as the sale of the Trybe business. Accent Group also indicated it would not continue with its CAT distribution agreement beyond its expiry in December 2024.

"This continued portfolio review will allow more capital and focus to be applied to the highest performing and growth businesses. In addition, to respond to ongoing cost inflation pressures, the Company has initiated a program to deliver further operational and cost efficiencies which are expected to improve CODB performance across FY25-FY27," said Agostinelli.

Total owned sales, which exclude The Athlete's Foot franchises, were up 3% to $1.43 billion, with a growth of 6.3% in owned retail offset by a 16.9% decline to the company's wholesale business.

Gross margins were 55.8% up 58 basis points, attributed to a higher retail sales mix, effective inventory management and the continued strategy to drive our distributed and vertical brands.

During the 2024 financial year, Accent Group opened 93 new stores, and closed 19 stores. New store performance remained strong, meeting expectations for sales, profit and return metrics.

The company's contactable customers grew by 400,000 to 10.2 million customers, with loyalty program membership of 8.1 million customers across The Athelete's Foot, Skechers, Platypus, Hype DC, Glue Store and Merrell.

Looking ahead, Accent Group said it would continue to roll-out new stores, with at least 50 store openings flagged for the 2025 financial year. The company highlighted Nude Lucy, Stylerunner and The Athlete's Foot as key avenues for growth in the year ahead.

Group Chairman David Gordon said “On behalf of the Board I would like to thank the entire Accent team for their efforts in FY24. Accent Group is defined by a culture of innovation and a drive for strong long-term investment returns for shareholders. The ongoing evolution of the Accent brand portfolio and disciplined approach to rationalising underperforming and non-core banners and stores enables more management focus and targeted capital allocation to drive future growth and shareholder returns.