Pawnbroker and retail chain Cash Converters is scaling its luxury segment with a rollout of dedicated stores, while expanding into high-end handbags and shoes.
Through FY26, the retailer piloted a luxury accessories store format, which initially covered luxury accessories such as jewellery and watches.
Following an initial pilot store in Bondi, Sydney, a further three stores were opened through FY26 in Melbourne, Adelaide and Banbury in the United Kingdom, with another opened in Perth in early FY27.
The company is also leveraging third-party AI authentication technology to expand the luxury product range to now include high-end handbags and shoes.
According to Cash Converters, the initiative has been a success so far, with management now planning to open more stores going forward.
“Our business remains well positioned to thrive amid a growing international emphasis on the circular economy and the repurposing of pre-owned goods, particularly across a new and growing range of luxury inventory (handbags, watches and jewellery), at a time when accessing mainstream finance remains increasingly challenging for many borrowers,” the company shared in its annual report released today.
All this comes as Cash Converters' luxury category gains momentum online, with product prices ranging up to the mid-five-figure range. One Rolex watch, stocked at the Bondi store, is selling for $42,888.
“Our stores are a major player in the circular economy, purchasing 1.4 million pre-owned goods globally in FY26,” the company reported. “Our shopfronts continue to evolve, and we have introduced luxury-only stores in some areas to further optimise product-market fit, reach new customers and expand margins.”
Cash Converters is publicly listed on the Australian Stock Exchange. It buys and sells products and offers small loans and pawnbroking services.
The increased focus on luxury in FY26 came amid an 11 per cent increase in revenue for the full year, hitting $429.2 million. Much of this growth was driven by the company’s push to acquire franchises, with around 160 franchises still operating across its core markets.
Despite the sales surge, though, the company’s statutory net profit after tax (NPAT) fell by 20 per cent to $19.7 million.
“We have sought to broaden the group’s earnings base by optimising same-store performance and through disciplined franchise store acquisitions and greenfield growth,” Cash Converters CEO and managing director, Sam Budiselik, said. “As a result of these measures, the store segment experienced very strong revenue and earnings growth.”
The company’s Australian operating EBITDA increased by 49.7 per cent to $46.8 million, with same-store sales here up 13 per cent.
Meanwhile, its UK operating EBITDA increased 53.7 per cent to $21.7 million and same-store sales increased 6 per cent.
“With $37.2 million in cash and cash equivalents, $60.5 million of available funding capacity and $20.3 million of positive operating cash flow, we remain committed to sustainable earnings growth, responsibly growing the Cashies Loan portfolio and expanding our corporate store network,” Budiselik said.