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Accent Group's footwear sales deliver record profit in FY18

The company is targeting mid-single digit EBITDA growth in FY19.

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Accent Group Ltd (ASX:AX1) has this morning delivered its FY18 results revealing a record underlying net profit after tax of $47.1 million, up 17.9% on the prior year.

Formerly RCG Corporation Ltd, Accent is a retailer and distributor of performance and lifestyle footwear, with over 420 stores across 10 different retail banners across Australia and New Zealand.

Brands include The Athlete’s Foot, Hype DC, Vans, Dr. Martens, Saucony, Timberland, Sperry Top-Sider, Palladium and Stance.

Increased digital sales and new stores

Accent’s CEO Daniel Agostinelli said “We are delighted with the record profit that the group has delivered for the FY18 year.

“In the face of a challenging consumer environment and increasing competition from international entrants, our strategy of delivering a best in class customer experience has delivered strong results.

“We have made good progress against our growth plan, including increased digital sales and new stores along with a significant improvement in gross profit margin through vertical brand sales and reduced discounting.”

Mid-single digit EBITDA growth in FY19

The company is targeting mid-single digit EBITDA growth in FY19.

This is expected to be achieved through low single digit like-for-like (LFL) store growth, continued strong digital growth, new stores and stores annualising from FY18.

Furthermore, continued margin improvement is expected through vertical and emerging brands and reduced discounting, which will primarily benefit margins in the current December half.

Accent’s chairman David Gordon said: “The investments that the business has continued to make in digital capability, store environment, people and marketing have ensured that the company is well positioned to continue delivering a world class customer experience and growth in shareholder value.”

Quick facts: Accent Group Ltd

Price: 1.665 AUD

ASX:AX1
Market: ASX
Market Cap: $902.71 m
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