Top member reports
Consensus community valuation
$1.100
Average Intrinsic Value
48.6%
Overvalued by
Active Member Straws
#AGM/Trading Update
Added 2 weeks ago

From the AGM presentation, for the 20 weeks of FY2021, 

  • LFL sales excluding Auckland and Victoria stores up 15.7%
  • LFL impact of Auckland and Victoria store closures of $39m
  • LFL sales including Auckland and Victoria stores up 1.3%
  • LFL digital sales up 129%
  • Targeting 30% of sales from digital.

On track to open 80 new stores in FY2021.

I feel the outlook is looking positive and the shareprice has some good momentum behind it. Well placed to benefit from both store and digital channels.

Disclaimer: I own AX1, bought during the covid selloff at an average of $0.85.

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#Bear Case
Last edited 3 months ago

AX1 delivered great headline numbers until you drill down in the detail. Sure the 1.1% LFL sales since July 1 are good.
However, 24 of the 58 million profit of came from Jobkeeper, which AX1 won't be eligible to receive after next month. This will crater FY21 profits.
It’s a good company in a difficult environment but it is way overvalued based on the impending profit decline.

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#Business/Trading Update
Added 5 months ago

25-June-2020:  Business and trading update

AX1 is up by around 10% at 2pm - on a day when the market is down by a fair whack - ~2%.  Excellent Management at Accent Group!

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#AGM/Trading Update
Added 2 weeks ago

20-Nov-2020:  Trading Update   plus   2020 AGM Presentation   and   Chairman and CEO Address to Shareholders

AX1 is up almost 5% so far today on the back of this positive update.

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#COVID-19 Update
Last edited 7 months ago

27-Apr-2020:  Business Update

DIGITAL SALES SURGE AND ALL STORES REOPENING WITH NEW SAFETY PROTOCOLS

On 25 March 2020, Accent Group Limited (AX1) announced the closure of Company owned stores in Australia (Group Stores) from 5pm on 27 March 2020 for a period of 4 weeks.  Today, we are pleased to provide a further business update, including the significant acceleration we have seen in digital sales, and to announce our plans to progressively re-open our stores in compliance with Government directives and with the safety of our team and our customers our priority.
 
Digital sales surge

Continuing its 5 year investment and further energised focus on digital, Accent Group has seen a surge in the Company’s digital sales.  Digital sales have grown from an average of approximately $250,000 per day prior to our stores closing in March, to between $800,000 and $1.1 million per day for the last 2 weeks of April.
 
Whilst our stores were closed to the public during April, some Group Stores were opened and staffed to operate as ‘dark stores’ [stores closed for trade to the public and used as fulfillment points for digital click-and-dispatch to customers] using our endless aisle technology to access our entire inventory base and to enable click-and-dispatch of product to our customers.  Our digital business has also responded to this shift in consumer behaviour with targeted consumer content and offers to drive traffic and conversion.  As our digital sales continued to escalate, the number of Group Stores opened as dark stores increased progressively through April.  All of our Group Stores and a number of our NZ company owned stores are now staffed and operating as dark stores, working together with our distribution centres to fulfil our digital sales.
 
During this period, we have also developed and implemented new in-store protocols to help ensure a safe working environment for our team members working in our dark stores.
 
Accent Group CEO, Daniel Agostinelli said “After years of investment by Accent Group in our digital team and technology, I am delighted with the growth in our digital sales. It is clear that there has been a seismic and most likely enduring shift in consumer behaviour away from traditional shopping centres to shopping online. With 18 websites and our leading digital capability, Accent Group is capitalising on this trend. We will continue to drive digital growth as the number one priority in our company.”

Re-opening stores and new safety protocols

In Australia, shopping centres have been required to implement the Government’s measures to manage the COVID-19 virus (such as social distancing and public gathering measures) but have remained open.  Whilst many stores in shopping centres have temporarily shut during the COVID-19 pandemic period, a number of retailers have also continued trading in the centres where the Company’s stores are located.
 
During this time, we have seen an increased demand for footwear for essential workers, such as the Skechers range for health professionals. We are also seeing strong demand for active footwear and apparel as more people are taking part in physical activities, with strong trading in these categories, particularly on The Athlete’s Foot and Stylerunner websites.
 
Accordingly, we have made the decision to progressively re-open all Group Stores with our new safety protocols in place to comply with all Government directives and to prioritise the health and safety of our team members and our customers.  We will review and adapt these in-store measures as the environment evolves.
 
The initial protocols will include:

  • Protective items such as hand sanitiser stations, face masks, gloves, disposable try on socks and disinfectant spray
  • Social distancing measures of 1.5 metres between customers and team members, including at counters and seating areas
  • Contactless serving of customers and payments
  • Customer capacity limits in stores
  • Training for team members on social distancing and additional hygiene measures

These protocols have been trialled successfully in several stores over the last 2 weeks and we will now be progressively re-opening all Group Stores to the public by May 11.
 
We believe that the significant increase in our online business most likely marks a permanent shift in consumer habits in Australia and NZ and we expect our online sales to represent a much larger share of our total sales in the future.  Our store network, along with our surging online business, is a fundamental competitive advantage to the Company, however we will not operate stores on unsustainable or uneconomic rental deals.  Accordingly, in the coming months, we will be re-evaluating the location, size and format of our store network to ensure the appropriate balance between digital and store sales.

--- click on link above for full announcement - including:

  • Leases and landlord negotiations
  • Supplier negotiations
  • Wage subsidies
  • Banking facilities

--- AX1 closed at $1.045 today, up +16%, but were up +36% earlier (at $1.28).

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