Australian footwear and lifestyle giant Accent Group has unveiled an ambitious five-year growth plan, setting its sights on at least $1.9 billion in annual sales and a 9 per cent earnings margin by 2030 – up from $1.5 billion in sales and a 7.6 per cent EBIT margin in FY25.
The ASX-listed company, which operates roughly 900 stores across Australia and New Zealand under brands including The Athlete's Foot, Platypus, Skechers and Hype DC, released its "Vision 2030: The Accent Evolution" strategy at an Investor Strategy Day today (May 13).
The plan is built around three pillars: Efficiency, Evolution and Expansion.
The first order of business is getting leaner. Accent is targeting around $40 million in gross cost savings, with approximately $30 million already actioned for FY27 and a further $10 million in the crosshairs for FY28. After accounting for inflation and comparable sales growth, the company expects to deliver net savings of between $15 million and $20 million by FY28.
The group is also closing the book on loss-making businesses – including the Glue Store, OzSale Herschel and Superga – generating an estimated $16.2 million in EBIT uplift heading into FY27. A further 102 stores are under review as leases come up for renewal, with the company forecasting an EBIT uplift of at least $7 million by FY30 through avoided losses, lease renegotiations and performance improvements.
Under its ‘Evolution’ pillar, Accent is looking to convert The Athlete's Foot's remaining 30 franchise stores to corporate ownership between FY27 and FY30, investing approximately $50 million to do so. The company says the buybacks could deliver roughly $14 million in incremental EBIT by 2030, with historical returns on franchise reacquisitions running at around 20 per cent.
The Athlete’s Foot has been a strong performer, delivering average comparable store sales growth of 5 per cent per year from FY22 to FY25. The brand boasts a net promoter score of 86 and an average transaction value of $170 — around 1.5 times that of other Accent footwear banners — underpinned by a fitting-service model that 84 per cent of customers use.
The most significant growth lever is the rollout of Sports Direct across Australia and New Zealand, in partnership with UK retail giant Frasers Group. Accent is targeting 8 stores by December 2026, 30 within three years, and an eventual network of 50 to 100 stores.
According to Accent, the early signs are encouraging. Annualised run-rate sales across just two stores and an online channel have grown from $7 million at launch to more than $15 million within four months. The company is targeting an EBIT margin of 7–10 per cent for the Sports Direct business at maturity, with stores ranging from 700 to 2,000 square metres and a target of more than $6,000 in sales per square metre.
Sports Direct is also being positioned to unlock access to key global brands, including Nike and Adidas – categories where Accent has historically had limited penetration – while tapping into a domestic sports retail market the company estimates at around $5 billion and growing at 3.5 per cent annually.
Beyond Sports Direct, Accent is targeting up to 20 additional new stores per year across brands including Skechers, Hoka, Lacoste, Nude Lucy and ODE. The company is also continuing to invest in its growing digital business, which generates more than $300 million in annual sales across 31 websites, with digital sales growing at a 10 per cent compound annual rate since FY23.
CEO Daniel Agostinelli said the company is well-positioned for the road ahead. "The entire team is focused on serving our customers and delivering the growth plan to drive long-term shareholder value," he said.
The company says it has sufficient capital and projected cash flows to fund the strategy through to 2030 without requiring additional equity, even accounting for the Sports Direct rollout and TAF franchise acquisitions.
Key risks to the plan include consumer sentiment driving like-for-like sales, and foreign exchange volatility – particularly movements in the AUD/USD rate, with the company's targets partly predicated on the Australian dollar holding above 70 US cents.