Accent Group's sales and strategic updates

Accent Group (ASX:AX1) has reported a 6.8% increase in total group-owned sales, including wholesale, for the first 20 weeks of FY25. Retail sales rose by 3.5% like-for-like. Despite a decrease in gross margin by 0.7% due to promotional activities, the company has made improvements in cost management. The group plans to open 40 new stores and is closing underperforming ones.

Accent Group's strategic outlook

Accent Group has demonstrated a strong start to FY25 with increased sales figures, while managing cost effectively despite promotional pressures. The company is set to expand its retail footprint with 40 new stores and is optimizing its portfolio by closing underperforming stores. The successful divestment of The Trybe and strategic board appointment of Dave Forsey underscores their commitment to growth and improvement. Ongoing discussions with Frasers Group signal potential future strategic collaborations. Prepared for the peak trading season, Accent Group is focused on maintaining a robust operational stance.

Executive insights from Accent Group

Retail sales for the first 20 weeks were in line with our early reports. The response to our promotions has impacted gross margin. We are on track to open approximately 40 new stores in the first half of FY25. The Trybe was divested successfully in August, and the closure of 17 underperforming Glue stores is progressing, with 8 already closed.