The Accent Group Ltd (ASX: AX1) share price is moving upwards during Monday’s session. At the time of writing, shares in the retailer are trading at $2.74, up by 0.74%. This is down from an intraday high of $2.77 achieved in morning trade. At the same time, the S&P/ASX 200 Index (ASX: XJO) is currently sitting 0.1% lower.
The company comes into focus after it completed its purchase of the Glue retail business.
Let’s take a closer look at today’s announcement.
Why the Accent share price is moving
Investors are driving up the Accent share price after the company advised it has completed its “acquisition of the Glue Store retail business and the wholesale and distribution brands business of Next Athleisure Pty Ltd”.
News of the acquisition was first announced in late April. The news sent Accent shares rocketing 11.2% on the day of the announcement.
Other brands Accent has acquired today include Nude Lucy, Lulu & Rose, and Article One. As well, Accent will receive distribution rights for international brands such as le coq sportif, Kappa, K-Way, and Sebago.
The company will rename Next Athleisure to ‘Accent Lifestyle’, which will become a new division within the Accent business. Accent says it hopes to grow the business “in the underserviced and fragmented youth apparel market in Australia and New Zealand”.
Investors are seemingly buoyed by today’s announcement judging by the performance of the Accent share price.
Accent Group CEO Daniel Agostinelli commented:
The strong strategic alignment between the Accent and Next Athleisure businesses provides us with a significant opportunity to accelerate our growing apparel business.
Our strategy and plans are already well progressed to increase Glue Store’s store network over time, accelerate its digital and virtual offerings, grow its owned vertical brands and significantly increase the range of footwear in its stores.
Accent share price snapshot
During the past 12 months, the Accent share price has increased by around 102%.
Despite plunging by more than 70% at the height of the COVID-19 market sell-off, the company’s value has now surpassed its pre-pandemic levels. In April this year, Accent shares hit an all-time high of $3.08 each – the tail end of the Glue purchase announcement.
Accent Group has a market capitalisation of $1.48 billion.