Why is this ASX All Ords retail share rocketing 13% higher today?

This retail share is having a strong finish to the week…

| More on:
A woman with strawberry blonde hair has a huge smile on her face and fist pumps the air having seen good news on her phone.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Accent Group Ltd (ASX: AX1) share price is on course to end the week with a strong gain.

At the time of writing, the footwear retailer's shares are smashing the All Ords index with an impressive 13% gain to $1.71.

Why is the Accent share price racing higher?

Investors have been bidding the Accent share price higher on Friday after the company released a trading update ahead of its annual general meeting.

According to the release, business has been booming for Accent so far in FY 2023. For the first 18 weeks of the financial year, total group owned sales are up 52% compared to the prior corresponding period.

Pleasingly, the company's decision to focus on improving its gross margin has been a success, with Accent reporting a 570 basis points increase in its gross margin compared to the same period in FY 2022.

This bodes well for its first half earnings growth if it has managed to control its operating costs during the period.

Accent's CEO, Daniel Agostinelli, was pleased with the stronger than expected start to the year. He commented:

We are very pleased with trade to date which has been above expectations. Our continued focus on driving full price, full margin sales has resulted in strong margin recovery from last year. Our store opening program is on track and we expect to open around 50 new stores in H1.

And while Agostinelli couldn't provide any forward guidance, he appears very optimistic on the company's prospects in the all-important holiday trading period. He said:

Whilst we provide no forward guidance, inventory levels reflect strong deliveries of exciting new product across all banners, and the Group's in-stock position along with sales and operational plans are well set heading into the three most important trading months of the year.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Retail Shares

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Retail Shares

I think this ASX 200 retailer could skyrocket in 2025

This business looks very compelling to me this year. Here’s why.

Read more »

A warehouse worker is standing next to a shelf and using a digital tablet.
Retail Shares

Up 6% already in 2025, what's next for Wesfarmers shares?

Let's see what's in store for the retail giant this year.

Read more »

Young couple at the counter of a hardware store.
Retail Shares

Why Wesfarmers shares just got a 10% upgrade from UBS

Can Wesfarmers shares put in another year of strong outperformance in 2025?

Read more »

A mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Retail Shares

A compelling ASX 200 stock with 'multiple growth levers'

This business could be a premier opportunity according to an expert.

Read more »

A happy beautiful woman with curly brown hair and wearing bright red lipstick smiles representing the soaring Adore Beauty share price today
Retail Shares

ASX retail stock rallies on 94% earnings boost

There was a beautiful update from this retailer.

Read more »

Siblings laying upside down on a couch.
Retail Shares

Guess which under-the-radar ASX 300 stock this fundie is 'particularly excited about'

A leading fundie forecasts substantial growth potential for this ASX 300 dividend stock.

Read more »

A bemused woman tries to choose between two slices of cake she holds on two plates.
Retail Shares

Are Coles or Woolworths shares a better buy right now?

Which of these supermarkets is the right choice to go shopping for?

Read more »

A woman peers through a bunch of recycled clothes on hangers and looks amazed.
Retail Shares

Why I think this ASX small-cap stock is a bargain at $7.70

This small business has big potential, in my view.

Read more »