The Accent Group Ltd (ASX: AX1) share price closed 6.34% higher today at $1.51. With no news from the company, the jump in share price could be attributed to an Australian Financial Review (AFR) article which reported the company’s expansion plans for high-end children’s footwear.
What did the AFR article say?
According to AFR, the Aussie footwear retailer is planning to open at least 20 shoe stores catering to higher-end kids’ fashion brands.
Accent is the owner of a wide portfolio of shoe store chains including Athletes Foot, Hype and Platypus and has exclusive distribution rights for 12 international footwear brands.
The AFR reports that the company is looking to expand its online-only The Trybe venture to bricks-and-mortar stores in the near future with plans to sell a range of child-sized versions of big name brands such as Adidas, Converse, Nike and Timberland.
Earlier this week, Inside Retail reported that the company is set to commence a four-store trial across Victoria and New South Wales for the concept.
Should the trial prove successful, the company reportedly looks set to expand its rollout to at least 20 stores as it looks to capture this market niche.
How has the Accent share price performed this year?
The Accent share price has performed relatively well in 2019, climbing 26.9% higher to $1.51 per share as at Friday’s market close.
However, the stock remains slightly down over the last 12 months after a difficult end to 2018 in line with the broader market downturn.
While headwinds have been building for retail in the past 12 months, and this has been reflected in softening economic data from the sector, Accent looks to be managing to avoid the worst of the downturn at present.
Accent is currently trading on a P/E multiple of 18.4x earnings and offering a dividend yield of 5.6% per annum while boasting a market cap of $768 million.
In terms of other retail stocks, Nick Scali Limited (ASX: NCK) has been another top performer as it’s share price has gained 27.2% so far this year while the likes of Harvey Norman Holdings Limited (ASX: HVN) has surged 32.3% higher in 2019.
A little-known ASX company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.
And make no mistake – it is coming. To the tune of an estimated $US22 billion.
Cannabis legalisation is sweeping over North America, and full legalisation arrived in Canada in October 2018.
Here's the best part: we think there's one ASX stock that's uniquely positioned to profit immensely from this explosive new industry... taking savvy investors along for what could be one heck of a ride.
AND, this is the first time The Motley Fool Australia has EVER put a BUY recommendation on a marijuana stock.
Simply click below to learn more on how you can profit from the coming cannabis boom.
Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.