Australian footwear business Accent Group is the latest fashion company to report a drop in wholesale sales.
Despite a 3 per cent lift in total owned sales to $1.43 billion for FY24 compared to the prior year, this growth was offset by a 16 per cent fall in wholesale revenue. Owned retail sales were up 6.3 per cent.
It comes as Universal Store Holdings and KMD Brands also reported challenges in wholesale for FY24 this week.
Universal Store’s Thrills business has shifted its focus towards direct-to-consumer, reporting uncertainty across certain key wholesale accounts. KMD also reported challenges with its Rip Curl business as wholesale clients pull back on orders.
Challenges in wholesale aside, Accent Group reported that its total owned retail sales growth was supported by a continued strong performance online.
Overall sales across the group, including The Athlete’s Foot which the group manages under franchise, were $1.6 billion - up 2.7 per cent.
Meanwhile, the group’s earnings before interest and tax (EBIT) and net profit after tax (NPAT) were both down on the prior year, hitting $110.4 million and $59.5 million respectively. EBIT and NPAT were down from FY23 results, which were $138.8 million and $88.7 million respectively.
“In the context of a more challenging consumer environment, I am pleased with the performance of the Accent team,” Accent Group CEO Daniel Agostinelli said.
“Highlights for the year include the profit contribution of our newer banners including Nude Lucy, Stylerunner, HOKA and UGG along with continued strong performance in Skechers, The Athlete’s Foot (TAF), Hype DC and others.”
Looking ahead, Agostinelli said FY25 is off to a strong start, with total sales for the first seven weeks up by 8.7 per cent, with like-for-like sales up 3.5 per cent.
“The Accent team is focused on executing our plan for FY25 including strong new product, opening at least 50 new stores, growth from our existing and new distributed brands and a continued drive on cost efficiency and gross margin improvement.
“In conclusion, I am pleased with the 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.”