Top Stocks 2025: A Sharebuyer’s Guide to Leading Australian Companies by Martin Roth

PART I
 THE COMPANIES

Accent Group Limited

Sydney company Accent Group, which started in 1988 as a small wholesale
 distributor based in New Zealand, is today a prominent footwear, apparel
 and accessories wholesaler and retailer. It has grown rapidly through a
 series of mergers and acquisitions and operates across 20 different retail
 banners, with exclusive distribution rights in Australia and New Zealand for
 14 international brands. Its brands include The Athlete’s Foot, Platypus
 Shoes, Hype DC, Skechers, Merrell, CAT, Vans, Dr. Martens, Saucony,
 Timberland, HOKA, Superga, Subtype, Stylerunner, Nude Lucy, Glue Store
 and UGG.
 Latest business results (June 2024, full year)
 Sales edged up but the company experienced a double-digit decline in
 profits as it was hit by inflationary pressures and weakening consumer
 discretionary spending. Retail sales rose 6.3 per cent, or 1.7 per cent on a
 like-for-like basis, with wholesale revenues down 17 per cent. The company
 reported pleasing strength in newer brands that included Nude Lucy,
 Stylerunner, HOKA and UGG, together with a continuing strong
 performance from Skechers, The Athlete’s Foot and Hype DC. New
 Zealand sales, representing 11 per cent of the total, grew by 5 per cent.
 During the year the company opened 93 new stores and closed 19, and at
 June 2024 it operated 863 stores and 32 websites. Note that the June 2024
 year comprised 52 weeks, compared to 53 weeks for the July 2023 year.
 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 discretionary consumer spending continues to be hurt by cost of living
 pressures. In response, it has initiated a program aimed at delivering
 operational and cost efficiencies over the three years to June 2027. It plans
 to open at least 50 new stores during the June 2025 year. It sees great
 potential in apparel sales, and has been achieving significant growth with its
 Nude Lucy women’s lifestyle apparel brand, with 36 stores and websites
 operating, and plans for more. It is now testing the American market for this
 brand with a US-focused website. Its Stylerunner apparel brand is also
 seeing solid growth, with 10 new stores soon to join the 28 existing outlets.

Top Stocks 2025: A Sharebuyer’s Guide to Leading Australian Companies by Martin Roth