The footwear conglomerate Accent Group recorded a decline of $13.5 million in half-year owned sales, amounting to $732.89 million, with a 25% decrease in wholesales.
The company oversees over 30 brands in Australia and New Zealand, such as Skechers, Hype DC, Dr. Martens, and Hoka, with 17 operating as wholesale brands.
Reduced wholesale sales have affected the company's cost of doing business (CODB), compounded by negative like-for-like sales (down 0.6%) and cost inflation in occupancy and store team expenses. Cost efficiency measures are underway, including a review of support office expenditures.
Accent Group's cost of doing business (CODB) increased by $12.8 million to $266.6 million, excluding lease depreciation and interest expenses.
Accent Group reported stronger sales results for brands like Skechers, TAF, Hype DC, Hoka, Stylerunner, and Nude Lucy, while facing more challenging conditions with Platypus, Dr. Martens, Vans, and Glue.
This update coincides with Rebel, Super Retail Group's sporting subsidiary, reporting difficult trading conditions in the footwear category during the first half of FY24.
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Additionally, the Australian Bureau of Statistics noted a deflationary trend across all fashion categories, with footwear, particularly women's footwear, experiencing the most significant impact.
Moving forward, Accent Group reports a 1.6% increase in total owned sales year-to-date through January, with owned retail sales rising by 5.6%, driven by the addition of new store locations.
Comparable retail sales for the initial seven weeks of the second half, ending on February 18, show a 0.7% decline compared to the previous year, contrasting with a 1.8% increase in the final six weeks of 2023.
"Whilst we recognise that there is some uncertainty in the economic outlook, in the context of the consumer environment, we have been pleased with trading and execution in the key periods of November, December and January.
Looking forward, our store opening program remains on track. Stylerunner performance has been positive and the Nude Lucy brand is resonating well with customers. Continued store rollouts are planned in both banners."
- Daniel Agostinelli, Accent Group CEO
As of December 31, the brand ran 888 stores under 24 different retail banners, having opened 70 during the initial half and anticipating 20 more openings in the latter half.
Related: On Running Will Open New Retail Store in Northwest Portland
However, there are also some brands that maintain good development momentum in some regions. Just as ShoesClub reported before, Brooks Running company reached historic $1.2 billion revenue in North America. At the same time, On Running company launched new retail store in Northwest Portland.