Accent Group Ltd (ASX: AX1) shares will be closely watched by investors today following the release of the company's half-year financial results. At market close yesterday, the Accent share price finished the day down 3.4% to $2.26.
Let's take a look at how the footwear retailer has been performing.
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What could impact the Accent share price today?
It will be interesting to see where the Accent share price moves today after the group reported a positive set of numbers.
For the six months ending 27 December, Accent reported total sales of $541.3 million, reflecting a 6.6% increase on the prior corresponding period (pcp). This was primarily driven by the company-operated stores which contributed sales of $466.8 million, a 5.1% lift on the same period last year. Digital sales represented 22.3% of retail sales and grew by 110% to $108.1 million.
During the period, Accent opened a total of 50 new stores, and closed 5 existing stores where rent outcomes could not be settled. For the full-year, the company expects to open more than 90 stores across its umbrella of brands.
Earnings before interest, tax, depreciation and amortisation (EBITDA) came to $138.4 million, a 29% jump over H1 FY20.
Net profit after tax (NPAT) surged to $52.8 million, up 57.3% over the comparable period. Accent noted that this is the seventh consecutive half-year of record profit.
The Accent share price will be in focus after the board declared a fully franked interim dividend of 8 cents per share to be paid to eligible shareholders on 18 March. The group amplified its interim dividend by 52.4% over H1 FY20's payout of 5.25 cents.
Accent closed the calendar year with a healthy cash balance of around $72.8 million.
Words from the CEO
Accent Group CEO Daniel Agostinelli touched on the company's performance, saying:
The Group's unrelenting focus on VIP (our loyalty customers), Vertical and Virtual along with our integrated digital and store operating model has delivered another record profit driven through strong sales and gross profit margin.
The team continued to adapt and accelerate the business, delivering strong execution and sales through the key cyber events in November and the Christmas trading period.
Outlook
In the first 8 weeks of trading into the second half, Accent stated that like-for-like sales across its network have soared 10.7% over the pcp.
It recognised that the back-to-school market is extremely robust with its Athlete's Foot brand achieving like-for-like sales up 20.4% in January alone. This result signified the company's biggest trading month of the year.
Given the positive momentum, Accent cautioned investor expectations as the COVID-19 environment remains fluid. It said that it would not provide sales or profit guidance for the FY21 full year.
Accent share price snapshot
Since hitting a low of 55.5 cents in March last year, the Accent share price has rebounded strongly. Whilst Accent shares may only show a 20% gain on a 12-month historical chart, they have surged more than 300% from their March lows.
Based on the current Accent share price, the company commands a market capitalisation of approximately $1.2 billion.
