The Accent Group Ltd (ASX: AX1) share price is soaring shortly after the market open today after the footwear retailer released a positive 1H FY23 trading update.
Accent is the company behind popular brands such as Hype DC, The Athlete's Foot, Glue, Platypus, Sneaker Lab, and Stylerunner.
The Accent Group share price is currently up 10.7% at $2.12.
Let's take a look at the details.
Accent Group share price goes skywards on 33% lift in sales
Accent Group reported continued strong trading through November and December.
Total sales for 1H FY23 (including franchisees) were up 33% on the same period in FY22 at $825 million. Including week 27 of the first half, sales were up 39%.
Earnings before interest and tax (EBIT) for H1 FY23 are expected to be in the range of $90 million to $92 million.
Accent said it estimates the impact of week 27 was about $36 million in sales, contributing about $10 million in marginal EBIT contribution.
What did management say?
Accent Group CEO Daniel Agostinelli said:
Deliveries of fresh new product throughout H1 and in the lead up to Christmas helped to drive higher than expected sales. Despite the impact of currency and clearance of discontinued brands, we are pleased with the year-on-year improvement in gross margin.
Overall inventory levels are clean and well positioned for the start of H2, reflecting a strong in-stock position in core lines and early deliveries of wholesale product for H2 sales.
ASX retail shares reporting strong sales despite inflation
Accent Group isn't the only ASX retail share reporting strong continuing sales recently.
This is significant given rising inflation has worried many investors that sales in the consumer discretionary category will fall.
JB Hi-Fi Limited (ASX: JBH) recently surprised the market with record sales and earnings in its preliminary FY23 half-year results. Group sales increased 8.6% year-over-year to $5,278.5 million. Net profit after tax (NPAT) screamed 14.6% higher to $329.9 million.
Super Retail Group Ltd (ASX: SUL) also reported a record first half.
Accent Group will release its official 1H FY23 results after the market close on 23 February.
