FY2020 TRADING UPDATE

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  1. 72.2k
    Posts

    25 June 2020
    Following the previous announcement on 27 April, Accent Group is delighted to announce that the
    business has achieved a strong FY2020 result. First and foremost, we recognise the contribution of
    our team, customers, and supplier and landlord partners in supporting the Company to achieve this
    result through a very challenging period.
    • FY2020 EBITDA1
    is now expected to be around 10% above the $108.9m achieved in FY2019
    • As at week 51 (w/e 21 June):
    - Total year to date sales (including TAF franchisee sales) for FY2020 of $923m
    - Adjusted Like for Like Sales2
    for FY2020, up 1.6%
    - Digital sales April - June up 150% to LY
    Digital sales
    Digital sales have continued to strengthen. May was a record month for Digital with a new daily
    record of over $2m during Click Frenzy. This was achieved at the same time as all our stores were
    trading and open for business. Digital sales for the month of May were $29m. In June, Digital sales
    represented 23% of total sales.
    The digital infrastructure that Accent Group has built over the last three years has ensured that
    record customer numbers and deliveries could be managed from our digital platform with significant
    additional capacity and scalability still available.
    Accent Group CEO, Daniel Agostinelli said “The strong trading performance over the last 2 months
    driven by digital has been well ahead of expectations. It is clear that there has been a seismic and
    most likely enduring shift in consumer behaviour. With 18 websites and our leading digital capability,
    Accent Group is capitalising on this trend. Through this period Accent has attracted many new
    customers online who have never shopped with us before. We will continue to drive digital growth as
    the number one priority in our company.”
    All stores now open
    We closed all our stores on 27 March. On 27 April we announced the Group’s plan to progressively
    re-open all its more than 500 store network to customers through the month of May. All Australian
    stores had re-opened for trade by 11 May and New Zealand stores reopened on 22 May. This was
    enabled by the Jobkeeper program in Australia and the New Zealand wage subsidy scheme, which
    allowed us to bring our stores team back to work and to get trading in all stores despite centre traffic
    and store originated sales continuing to be well down. The safety of our customers and teams has
    1 Unaudited EBITDA on a comparable basis to the pre AASB16 reported EBITDA for FY2019 of $108.8m
    2
    Includes The Athlete’s Foot franchise stores, excludes stores that were closed in April
    remained paramount. The new safety protocols that were implemented as our stores reopened are
    working well and have been well received by our team and customers.
    In general, sales in New Zealand, Western Australia, South Australia, Queensland and regional areas
    have bounced back more strongly than the metro centres in Melbourne and Sydney. The customer
    trend to activewear and performance running continues to remain very strong in Stylerunner and
    The Athlete’s Foot, with a broad-based recovery in spend across all banners and product categories
    through May and June.
    Leases and landlord negotiations
    To date we have concluded successful negotiations with our landlord partners, and subsequently
    have continued to pay rent, in respect of the vast majority of our stores, with landlords who have
    been willing to come to the table in the spirit of the Government code of conduct. These outcomes
    have been achieved with both major and independent landlords who have acted in the spirit of the
    code and “shared the financial impact” of the continuing lower levels of centre customer traffic. We
    will continue to seek to negotiate with our other landlords in the hope that they too will engage in
    the spirit of the Government’s announcements. Where we are unable to achieve a resolution that
    we consider to be fair, we will close stores.
    Mr Agostinelli said: “We are committed to maintaining our position as the largest multi-channel
    footwear retailer in our market. The mix of Accent’s superior digital capability and the magic of our
    stores gives us a key competitive advantage, but it is important that we reach agreement with our
    landlords for sustainable and fair rental deals. With landlords where this cannot be achieved, we will
    close stores. We are delighted to report that to date we have been able to reach agreement with the
    vast majority of our major and independent landlords.
    FY2020 results outlook
    Sales in May and June (to week 51) have been strong with Like for Like sales3 up 7.0%. From 1 June,
    the Group stood up all its 1,500 permanent employees to full employment and full pay, which
    enabled a further acceleration of sales results in June.
    FY2020 EBITDA is now expected to be around 10% above the $108.8m achieved in FY2019. This
    result has been achieved through strong performance in May and June driven by digital sales,
    effective cost management, the availability of the Australian and New Zealand government wage
    schemes to keep our digital team stood up and our stores back open early, and the support of our
    supplier and landlord partners.
    The work completed to right size the Group’s inventory and stronger than planned sales has ensured
    that closing inventory will be clean. FY2020 final operating profit below the EBITDA line is expected
    to include a non-cash impairment of assets of $3-4m on several store and other assets where
    revenue has been impacted in the current environment.
    Mr Agostinelli said: “Accent Group’s greatest asset is its people and I am incredibly proud of the
    resilience, tenacity and performance of our team through this difficult period”.
    3
    Includes The Athlete’s Foot franchise stores

    courtesy of Bell Direct
    ========================================================================

    DYOR

    i hold AX1 'free-carried'

  2. 72.2k
    Posts

    20 November 2020

    Trading Update
    Accent Group Limited (ASX:AX1) (Company) advises that sales for the first 20 weeks1 of
    FY2021 are well ahead of expectations:
    • LFL sales excluding Auckland and Victorian stores up 15.7%
    • Impact of Victorian and Auckland store closures2 of $39m of sales compared to prior year
    • LFL sales including impacted stores up 1.3%
    • Digital sales up 129% on prior year
    Accent Group CEO, Daniel Agostinelli, said “With Victorian stores now open post lockdown,
    trade is strong and well ahead of expectations. We are continuing to see digital sales growth
    in excess of 100% and customers flooding back to Victorian physical stores since reopening
    at the end of October. The strength in trade in the other states and New Zealand as previously
    reported has continued. We do not expect that the recent lockdown in Adelaide will have a
    material impact on sales given our store footprint and demonstrated capability to pivot to online
    sales.”
    Consistent with our approach to date through the Melbourne and Auckland lockdowns, all our
    permanent employees in Adelaide will remain on full pay and we will also honour payment for
    committed shifts to our casual team for the initial lockdown period.
    We are seeing a continued consumer trend to active and lifestyle driving strong performance
    across all the major Accent banners, in particular The Athlete’s Foot, Hype DC, Platypus,
    Skechers, Vans, The Trybe, Pivot and Stylerunner.
    Update on growth strategy milestones
    • Store growth: On track to open approximately 80 new stores, including new concepts, in
    FY2021.
    • Stylerunner: On Saturday 31 October, the first Australian Stylerunner store opened in
    Armadale (VIC) with sales to-date materially ahead of expectations. An additional 3 stores
    have been signed.
    • Pivot: 3 Pivot stores are now open in Highpoint (VIC), Ballarat (VIC) and Shellharbour
    (NSW) and are all trading well against expectations. 15 stores are planned to be open by
    the end of FY2021.
    Mr Agostinelli concluded “We are pleased with the strong trade to date and delighted with the
    performance of our new stores in Stylerunner and Pivot. Our plans are well set to capitalise
    on the important November cyber events, Christmas and Back to School trading periods. Our
    integrated omnichannel model has allowed us to trade strongly through a highly disrupted
    period along with demonstrated operating capability to respond to store impacts that may arise
    due to COVID-19, including the current Adelaide lockdown.

    courtesy of Bell Direct
    ========================================================================

    DYOR

    i hold AX1 'free-carried'

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