The Accent Group Ltd (ASX: AX1) share price is racing higher on Thursday morning.
At the time of writing, the footwear retailer's shares are up 3.5% to $2.64.
Image source: Getty Images
Why is the Accent share price charging higher?
The catalyst for the rise in the Accent Group share price has been an announcement this morning.
According to the release, Accent has been appointed by Authentic Brands Group (ABG) as the new exclusive distributor in Australia and New Zealand (ANZ) for Reebok for an initial 10-year term.
ABG is a global brand development, marketing, and entertainment company. ABG signed a definitive agreement to purchase Reebok from Adidas earlier this year for 2.1 billion euros.
Once the ABG-Adidas transaction closes, the agreement with Accent will become effective. This is currently anticipated to be in the second quarter of 2022.
What's the plan?
Together with ABG, Accent Group revealed that it plans to grow the Reebok brand in the ANZ market.
Accent will grow the brand through existing wholesale accounts, direct online sales, and Accent's multi-brand retail banners.
All of Accent's stores stock Reebok. They include Glue Store, Stylerunner, Pivot, The Trybe, Platypus and Hype DC.
Accent Group's CEO, Daniel Agostinelli, said:
Reebok is an iconic global brand that needs no introduction. We are delighted to be the new distributor in Australia and New Zealand.
The Reebok distribution agreement further strengthens Accent Group's competitive moat – a broad and deep portfolio of international and vertical brands that is digital first, customer obsessed, and delivers product differentiation and strong margins.
Accent Group share price snapshot
Including this morning's gains, the Accent Group share price is now up 12% in 2021.
