Half Year 2025 Accent Group Ltd Earnings Call Transcript
Key Points
- Accent Group Ltd (ASX:AX1) reported a group EBIT of $80.7 million, up 11.5% from the previous year.
- The company successfully opened 42 new stores, increasing the total number of stores to 903, including online platforms.
- Vertical owned brand and product sales grew to more than $65 million, contributing to an improved gross margin.
- The company announced a fully franked interim dividend of $0.055 per share, representing a payout ratio of around 70% of the half-year EPS before non-recurring items.
- Accent Group Ltd (ASX:AX1) has signed new distribution agreements with Lacoste and Dickies, and renewed agreements with Merrell and Timberland, indicating strong brand partnerships.
- Gross margin percentage decreased by 100 basis points to 55.6%, due to a more promotional consumer environment.
- The company faced inflationary pressures in store team wages and annual rent reviews, impacting cost management.
- New Zealand remains a challenging market, with no significant improvement in sales performance.
- The Vans brand has been underperforming globally, although there are slight signs of improvement.
- The company is experiencing a promotional environment in lifestyle footwear, affecting margins and requiring competitive pricing strategies.
Thank you everyone for joining the 2025 Accent Group half year results investor briefing. We'll begin with a presentation by Daniel Agostinelli, CEO; and Matthew Durbin, Group CFO and COO; followed by a Q&A session. (Operator Instructions). Now, Daniel over to you. Thank you.
Thank you. Good morning everyone, and thank you for taking the time to attend the call today. I'm joined today by our Group CFOO, Matthew Durbin. We will now take you through the results for the half year ended the 29th of December, 2024, and a trading update for the first 7 weeks of the second half of FY25. There will be an opportunity to ask questions at the end.
In light of the prevailing consumer environment, I'm pleased with the company's overall performance for the 6 months to December 2024. The Accent team's ongoing focus on our customers, online, in-store, new -- and together with new and fresh product, and the roll out of 40 new stores -- 42 new stores all contribute -- contributed to us
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