Full Year 2025 Accent Group Ltd Earnings Call Transcript
Key Points
- Accent Group Ltd (ASX:AX1) reported total sales of $1.6 billion for FY25, with EBIT reaching $110 million, aligning with the upper end of their guidance.
- The company successfully opened 54 new stores, increasing their total store count to 903, including online platforms.
- Accent Group Ltd signed new distribution agreements with Lacoste and Dickies, and renewed agreements with Merrell and Timberland, while extending their Skechers distribution agreement to 2035.
- The company reported strong growth in vertical owned brands and products, contributing over $130 million to sales, enhancing underlying gross margins.
- The rollout of Sports Direct stores in the ANZ region is on track, with the first store set to open in Melbourne in November, and plans for at least 50 stores over the next six years.
- Gross margin decreased by 85 basis points to 54.9% due to a more promotional consumer environment and lower sales.
- The company faced challenges in the lifestyle footwear market, with wholesale sales reflecting broader macroeconomic and consumer conditions.
- Inventory levels increased year-on-year, partly due to stock in transit and new store openings, raising concerns about potential discounting.
- The company experienced inflationary pressures in store team wages and rent reviews, impacting the cost of doing business.
- The Athlete's Foot franchise reacquisition program, while on track, requires significant investment, with 15 stores reacquired generating $43 million in sales but necessitating further acquisitions.
Thank you everyone, for joining the Accent Group FY25 full year investor briefing. We will begin with a presentation by Daniel Agostinelli, Group CEO; and Matthew Durbin, Group CFO, followed by a Q&A session. (Operator Instructions)
Now Daniel, over to you. Thank you.
Thank you, Kierra. Good morning, everyone, and thank you for taking the time to attend the call today. We will now take you through the results for the full year ended June 29, 2025 and a trading update for the first seven weeks of the H1 FY26 year. There will be an opportunity to ask some questions at the end. Accent again delivered sales growth and profitability in the FY25 year.
I'm pleased with Accent team's ongoing focus on our customers, product innovation and high standards of retail execution, online and in stores. We continue to make progress against our strategic objectives.
If I can now refer you to the operational highlights on page 4 of our investor presentation, which was released to the
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