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Highlights
- Profit Growth: Net profit increased by 11.7% to $47.2 million.
- Sales Performance: Revenue grew by 4.2% to $845 million, with same-store sales up 2.9%.
- Dividend Adjustment: Interim dividend reduced to 5.5 cents per share.
Shoe retail giant Accent Group (ASX:AX1) has reported an 11.7% rise in net profit for the first half of the financial year, reaching $47.2 million. Despite the positive earnings performance, the company has adjusted its interim dividend, a move aimed at preserving cash amid evolving market conditions.
Total group sales climbed 4.2% to $845 million in the six months leading up to December 29, supported by a same-store sales increase of 2.9%. Earnings before interest and tax (EBIT) also saw a healthy rise of 11.5%, reaching $80.7 million.
In a strategic decision, the company declared an interim dividend of 5.5 cents per share, fully franked, scheduled for payment on March 20. This figure is lower than the 8.5 cents per share declared a year earlier and falls below market projections of 6.4 cents per share.
The retailer, known for brands such as Hype DC, Platypus, and Hoka, continued its expansion strategy, opening 42 new stores in the first half of the year. This expansion brought the total number of stores to 903, exceeding expectations. Additionally, Accent Group strengthened its brand portfolio by securing distribution rights for Dickies and Lacoste, while also streamlining operations by divesting The Trybe business and advancing the closure of underperforming Glue stores.
Despite industry challenges, the company’s stock reacted positively, trading 3.3% higher at 10:57 AM. The performance reflects investor confidence in Accent Group’s ability to navigate market dynamics while maintaining growth momentum.
As the retail landscape continues to evolve, Accent Group remains focused on strategic brand partnerships, store expansions, and operational efficiencies, positioning itself for sustained long-term performance.
