Accent Group has posted a record 27.3% rise in net profit for the six months to December 30.
The footwear group hauled in a record $32.2 million in profit, with sales up 6.2% to $458.1 million.
Importantly, gross margin improved 280 basis points to 57.3%.
Accent Group CEO Daniel Agostinelli said margin growth, as well as profit improvement, was down to a disciplined discount strategy.
This involved less reliance on promotional activity and more investment in multiple sales channels, such as click and collect and click and dispatch, to drive full-margin sales.
Total digital sales grew 94% during the half, on top of the 170% growth achieved during the same period last year.
“The strength of our brands, stores and customer proposition along with the fully integrated omni-channel platform that has The Group has 12 exclusive distributed brands, 449 stores, 16 websites and more than four million loyalty base customers.
"Accent Group owns a powerful, scalable, end to end supply chain with direct access to brands and customers that ensures a strong competitive position for future growth," he said.
Excluding The Athlete's Foot franchise store sales, company-owned sales in brands such as Platypus and Hype DC reached $389.4 million.
Playpus traded ahead of expectations, with Hype DC, The Athlete's Foot and Subtype trading in line.
Accent Group has increased its outlook for the second half, expecting at least 10% earnings growth in the second half.
This is after reporting a 2.5% increase in like-for-like sales in the first seven weeks of the new half.