Footwear conglomerate Accent Group has reported a 160% increase in its digital sales in the first half of FY23 compared to the same time in FY20. This is despite a drop from the first half of FY22.
The drop in online sales has been noted in other recent trading updates, including Universal Store and Best & Less, matched with a rise in bricks-and-mortar sales.
In the first half of FY22, the Group accrued a record online sales of $159.9 million, triple the size of 1H FY20 results of $51.6 million. In 1H FY23, the Group’s online sales dropped to $134 million, which is still above the results in both the first half of FY21 and FY20.
Its digital sales contributed to 18.9% of the Group’s total sales in 1H FY23, with total sales up 39% on the same period last year to $825 million.
Compared to pre-pandemic (1H FY20), Accent Group’s fulfilled 106.4% more online orders in 1H FY23, with a conversion rate increase of 8.7% in the same period, and an average order value increase of 21.5%.
The Group also added 300,000 new contactable customers to its base, which now sits at 9.6 million, with a goal to reach 10 million in the year ahead. The total contactable customer base has more than doubled since FY19.
Accent Group said Platypus, Skechers and Hype in particular have continued to grow their customer base and drive repeat customer behavior, alongside the launch of a new customer data platform.
Its loyalty program now has a total membership of 7.4 million across The Athlete’s Foot, Hype DC, Platypus, Merrell and Skechers.
Accent Group CEO Daniel Agostinelli welcomed the results, citing the continued focus on customer, new product, full margin sales, and return on investment as the key drivers.
“What is most pleasing is the strength and consistency of performance across our large core banners, including Skechers, Platypus, Hype DC, The Athlete’s Foot (TAF), Vans and Dr Martens, along with the progress that we have made in our new banners now that trading conditions have normalised,” Agostinelli said.
“One of the key initiatives for H1 was driving the profitability of the Accent Group digital business. Whilst sales were down on last year due to the lockdowns in 2021, we have improved our digital business and online EBIT was ahead of last year.”
Meanwhile, the group opened 53 new stores across its markets, transitioned 13 stores from discontinued to continuing and closed 10 stores where the required rent outcomes could not be achieved. The group now holds 805 stores, with an estimated total of 825 to be achieved by FY23 end.
In the start of the second half of FY23, like-for-like (LFL) sales for the first seven weeks were up 16% on the prior year. Compared with FY20, LFL sales were up 16.1%, a compound annual growth of 5.1%.
“Whilst we recognise that there is some uncertainty in the economic outlook, to this point we have not yet seen any significant change to consumer spending in our categories,” Agostinelli said. “Many of our brands target a younger customer demographic who tend to be less impacted by interest rates and cost of living pressures.
“In conclusion, I am pleased with the ongoing progress that has been made on our key growth strategies as we continue to build a strong, defensible business in Australia and New Zealand.
“Our portfolio of global distributed brands, owned vertical brands, integrated digital capability and large store network are core assets of the group and position the company well for growth into the future.”