Accent (ASX:AX1) share price on watch following record FY21 results

Accent delivered record numbers across its key metrics. But will this be enough to excite investors?

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The Accent Group Ltd (ASX: AX1) share price will be in the spotlight this morning. This comes after the company released its FY21 full-year results yesterday evening.

At Wednesday’s market close, Accent shares finished the session slightly down 0.85% to $2.34.

Below, we take a closer look to see how the footwear retailer performed for the period.

Accent share price in focus after 20% sales boost

The Accent share price could be a mover following the company’s record result for the 12 months ending 27 June 2021. Here are some of the key highlights:

  • Total sales increased to $1.14 billion, up 19.9% on the prior year (FY20 $948.9 million).
  • Earnings before interest and tax (EBIT) improved to $242 million, up 19.3% on the prior year (FY20 $202.9 million).
  • Net profit after tax (NPAT) surged to $76.9 million, up 38.6% on the prior year (FY20 $55.5 million).
  • Earnings per share (EPS) rocketed to 14.21 cents, up 38.2% on the prior year (FY20 10.28 cents per share).
  • Full-year dividend lifted to 11.25 cents per share, up 21.6% on the prior year (FY20 9.25 cents per share).

What happened in FY21 for Accent?

It will be interesting to see how the Accent share price performs today after the company reported that sales momentum continued throughout the year, with heightened customer demand via its digital segment.

Online sales soared by 48.5% on FY20’s result to $209.9 million, accounting for 21% of the group’s total retail sales. This was underpinned by the growing number of brands owned by Accent which continued to be a key strategic focus.

Retail sales took up the bulk of earnings, rising by 19.6% on the prior comparable year to $835.4 million. Standout performances in Hype DC, Sketchers, Platypus, The Athletes Foot, and Trybe were highlights. Like-for-like (LFL) sales advanced 15.1% for the second half and 8.3% for the full year.

In addition, Accent opened 90 new stores during the year and closed 7 stores. In total, there are 638 stores operating across Australia and New Zealand.

Investors will be keeping an eye on the Accent share price during Thursday’s session after digesting the company’s latest update.

What did management say?

Accent group CEO Daniel Agostinelli commented on the milestone achievement, saying:

Given the disruption to the business and the impact of the 14 separate lockdowns that occurred through-out the year, I am delighted with the FY21 results.

The Group’s continued focus on VIP (our loyalty customers), Vertical and Virtual, along with our integrated digital and store operating model, has delivered another record profit.

The acquisition of the Glue store business to form our new Accent Lifestyle division was a key highlight for the year and I couldn’t be more pleased with the quality of the business and the progress that has been made in the first 90 days.

I am also pleased to report that in August we signed an early renewal of our key Skechers distribution license for a further 6 years to extend this licence from 2026 to December 2032.

What’s next for Accent?

Looking ahead, Accent estimates that the group EBIT impact due to COVID-19 related disruption will be at least $15 million. However, the company warned this number could grow if both New South Wales and Victoria are unable to suppress the latest outbreak.

Whilst the duration of the current lockdowns is unknown, the company remains cautious on the near-term outlook. As such, it did not provide sales or profit guidance for the FY22 full year.

Accent share price snapshot

Over the past twelve months, the Accent share price has climbed by more than 46%. Year to date, the company shares are relatively flat, down by 0.85%. Based on the current Accent share price, the company has a market capitalisation of around $1.3 billion.

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