Accent Group shares slump after lower-than-expected profit
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More news: Shares in Accent Group slumped nearly 11% to $2.16 after The Athlete’s Foot and Hype DC chain owner reported a 32.9% slide in full-year profit to $59.53 million, missing analyst expectations.
RBC Capital Markets analyst Wei-Weng Chen said FY24 total owned sales and gross profit margin were both behind expectations but noted on the positive side that the company's FY25 trading update appears to be stronger than consensus.
RBC has an 'outperform' rating on the stock with a $2.40 price target.
Accent Group profit tumbles in challenging environment
The news: Footwear retailer Accent Group has reported a lower-than-expected full-year profit despite lifting sales in a challenging consumer environment.
The numbers: Net profit for the year to June 2024 slumped 32.9% to $59.53 million, missing analyst expectations of $64 million.
Revenue was up 2.4% to $1.45 billion, and the company will pay a final dividend of 4.5 cents a share, down from 5.5 cents a year ago.
The context: The Athlete’s Foot and Hype DC chain owner said it continues to evaluate business unit performance amid a more challenging consumer environment and announced it has divested The Trybe kids footwear business and will discontinue the CAT workwear distribution in December. Accent announced in July it would close 17 underperforming Glue Store locations.
It said total sales for the first seven weeks of FY25 are up 8.7% from a year ago, and up 3.5% on a like for like basis.
CEO Daniel Agostinelli said plans for the current fiscal include opening at least 50 new stores, and a continued focus on cost efficiency and gross margin improvement.
The source: ASX announcement
