Accent shares tumble 10pc as wholesale sales dry up

afr.com:

Accent Group, whose brands include the Hype and Platypus shoe chains, says like-for-like sales continued in negative territory in the first 19 weeks of the new financial year, with trade at its own retail doors holding up, but sales to wholesalers slowing due to softer demand from shoppers.

Same-store sales, including The Athlete’s Foot franchises, digital sales and Glue stores, have fallen 2 per cent so far this year – slightly deteriorating from the 1.8 per cent fall it reported in the first seven weeks. This sent the stock tumbling 10 per cent lower to $1.90 in early trade on Friday since it was lower than the prediction of some analysts, although it was better than consensus for a 3 per cent fall.

Total sales from its owned retail doors gained 2.1 per cent in the period, the Brett Blundy-backed retailer told the annual meeting on Friday. But with wholesale sales under pressure, this dragged group sales in the period to be in line with last year.

“Wholesale sales have been more challenging, reflecting softer demand from other retailers,” Accent Group boss Daniel Agostinelli said.

Accent Group CEO Daniel Agostinelli says Hoka and UGG stores are performing well, despite the tougher conditions. 

Gross margins are broadly in line to the comparable period last year, but inflationary cost pressures and weaker like-for-like sales have pushed up the cost of doing business, the company said.

Accent, which is also behind the Skechers and Stylerunner brands, expects to open 70 new stores in the half with many opening in November and December. The group’s stock position, along with its sales plan, are set heading into the three most important trading months of the year, Mr Agostinelli added.

In August, the CEO said Australian