Australian footwear conglomerate Accent Group has reported a total sales lift of 0.8 per cent to $1.62 billion in FY25, with just a 0.2 per cent fall in earnings before interest and tax to $110.2 million.
With EBIT, this has hit the upper end of its guidance shared on June 12 this year, where the company projected to hit between $108 million and $111 million.
The total sales lift includes The Athlete's Foot franchises, with many stores still run under franchise. Accent Group manages around 30 brands and retailers, including Platypus Shoes, Hoka and Hype DC.
Accent Group CEO Daniel Agostinelli said the sales lift in FY25 comes amid the opening of 54 new stores, a strategic deal with Frasers Group in the UK to roll out Sports Direct in Australia and New Zealand, and the signing of long-term distribution rights for Dickies and Lacoste.
The group’s total owned revenue, excluding The Athlete’s Foot franchise store sales, was up by 1.6 per cent to $1.45 billion. Within this, Accent reported that its performance brands, including The Athlete’s Foot, Hoka, Saucony and Merrell, along with Hype and Stylerunner, performed strongly. Nude Lucy had a record year of sales and profit.
The group’s net profit after tax (NPAT) fell 3.1 per cent to $57.7 million.
Accent also reported that its gross margin slipped by 85 basis points to 54.9 per cent in FY25, predominantly driven by a prevailing consumer and promotional environment.
Whilst sales were lower-than-expected, the company claimed it maintained a disciplined focus on managing inventory levels, placing additional downward pressure on gross margins.
Gross margin was also impacted by an increase in inventories, which rose from $264 million at FY24 end to $308 million by FY25 end. According to Accent, the year-on-year increase in inventories arose from the timing of goods in transit, reacquisition of The Athlete’s Foot franchise territories, the Frasers transaction and opening stock for Dickies and Lacoste.
“Aged inventory levels were in line with prior year and fully covered by inventory provision,” the company reported. “Our strategy for gross margin remains focused on driving underlying improvement through an increasing mix of our distributed and owned vertical brands.”
The sales momentum continued in the first seven weeks of FY26, with total owned revenue up 2 per cent on the prior corresponding period.
Accent Group reported it is seeing some early signs that its lifestyle banners including Platypus and Skechers are back to growth, with sports and performance banners continuing to grow. “We have a strong pipeline of committed wholesale orders,” the company noted.
Like-for-like sales for the first seven weeks were up 0.8 per cent. The company is targeting high single-digit EBIT growth for FY26, inclusive of the startup costs associated with Sports Direct.
“The outlook for H1 FY26 EBIT is for a similar level of EBIT to H1 FY25, then growth in H2 FY26. This target is based on achieving low single-digit LFL sales growth, growth from new and annualising stores, incremental profit from The Athlete’s Foot franchise acquisition program, new distributed brands and continued growth in Hoka and Nude Lucy.”
“I am pleased with trade in the opening weeks of FY26,” Agostinelli said. “In particular, the return to positive LFL retail sales growth. Wholesale sales have traded in line with prior year, with strong forward orders.
“The Accent team is focused on executing our plan for FY26, including innovative new product, new stores, launching Sports Direct, growth from our existing and new distributed brands and a continued drive on cost efficiency and underlying gross margin improvement.”