Top Stocks 2024: A Sharebuyer’s Guide to Leading Australian Companies by Martin Roth

PART I 
THE COMPANIES

Accent Group Limited
 ASX code: AX1

Sydney company Accent Group is a nationwide footwear wholesaler and
 retailer that has grown rapidly through a series of mergers and acquisitions.
 It owns nine brands and distributes 17 others. These include The Athlete's
 Foot — established in 1976 — Hype DC, Platypus, Skechers, Merrell, CAT,
 Vans, Dr. Martens, Saucony, Timberland, Palladium and UGG. The
 company's wholesale division distributes footwear and apparel. Accent also
 operates in New Zealand.
 Latest business results (July 2023, full year)
 In an environment of subdued consumer discretionary spending, Accent
 produced an excellent result, with strength across all major brands, although
 with a slowdown towards the end of the financial year. Part of the growth
 came from the opening of new stores and the addition of the UGG brand to
 its portfolio, though on a like-for-like basis revenues were up 10.2 per cent.
 Total group sales, including franchisees, of $1.57 billion were up 24 per
 cent from the previous year. New Zealand sales, representing 11 per cent of
 the total, grew by 18 per cent. Even as growth was slowing towards the end
 of the financial year business remained strong for Skechers, The Athlete's
 Foot and Hype DC. Apparel sales grew to represent around 7 per cent of
 total turnover. Digital sales edged down slightly to $260.5 million.
 Productivity benefits during the year boosted profit margins, despite
 unfavourable currency rate movements. During the year the company
 opened 80 new stores and closed 21, and at July 2023 it operated a network
 of 786 stores in Australia and New Zealand, along with 35 websites.
 Outlook
 Accent maintains its ambitious long-term growth strategy and expects
 profits to continue rising, although it is cautious about the near-term outlook
 as consumer spending continues to be hurt by inflationary pressures. It
 plans to open at least 50 new stores during the June 2024 year. It sees great
 potential in apparel sales, and has been achieving significant growth with its
 Nude Lucy women's lifestyle apparel brand, with 22 stores opened over 18
 months. Its Glue Store and Stylerunner apparel brands are benefiting from
 operational improvements. Profits are growing for its key The Athlete's
 Foot brand, with a network of 92 corporate stores and 63 franchise stores.
 Accent's goal is that digital sales will eventually represent 30 per cent of

Top Stocks 2024: A Sharebuyer’s Guide to Leading Australian Companies by Martin Roth