Australian footwear business Accent Group is expecting its group earnings before interest and tax to be in the range of $109 million to $111 million for full year FY24.
The projection includes an additional charge in the second half of approximately $14.2 million relating to Glue Store, where the company decided to exit 17 underperforming stores “where required returns are not being achieved”.
This will result in a Glue Store business consisting of 18 stores (including its digital store) which is expected to be profitable in FY25.
Excluding the Glue Store charge, the unaudited Accent Group FY24 EBIT is expected to be in a range of $123.2 to $125.2 million.
“Trading conditions across the Group in H2 FY24 improved on H1 FY24, with like-for-like sales in H2 4.1% ahead of prior year,” Accent Group CEO Daniel Agostinelli said. “For the full year, total like-for-like sales are up +1.7% on FY23.”
“I am pleased with our retail performance in H2 where the Company continued to experience strong momentum in Skechers, The Athlete’s Foot, Hype DC, Stylerunner, Nude Lucy, and Hoka amongst others.
“The decision to exit the 17 underperforming stores will allow the Glue Store management team to focus on a profitable business comprising 18 stores including digital.”
The company will release its full year FY24 results on Friday, August 23, 2024.