Accent Group Limited (ASX: AX1) Provides AGM Trading Update

Sales Performance

Accent Group Limited (ASX: AX1) reports a notable increase in performance, with total Group owned sales up 6.8% for the first 20 weeks of FY25. Like-for-like retail sales also showed a promising growth of 3.5%. The Group is currently experiencing a more promotional trading environment, which has resulted in a gross margin percentage decrease of 70 basis points compared to the previous year.

Operational Developments

The company is seeing positive traction in its cost of doing business improvement initiatives, marked by an improved CODB percentage to sales even when including restructuring costs. Group CEO Daniel Agostinelli commented, “Retail sales for the first 20 weeks have continued to align with the LFL sales reported in the first 7 weeks. We continue to observe that customers are responding to promotion and value offers with an associated impact to Gross Margin %.”

Accent Group’s new store opening program is progressing well, with plans to open about 40 new stores in the first half of FY25. Additionally, the company successfully divested The Trybe in August and is on track with closing 17 underperforming Glue stores, having already shut down 8.

Frasers Group Appointment

In line with recent developments, Accent Group intends to appoint Dave Forsey, former CEO of Sports Direct and current Frasers GM for the APAC region, to its Board effective after the conclusion of the 2024 Annual General Meeting. The company is actively discussing strategic opportunities with Frasers Group.

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Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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