Accent Group (ASX: AX1) has released a 2030 strategic growth plan targeting at least $1.9 billion in sales, an EBIT margin above 9%, and a store network of approximately 950 locations.
The footwear and lifestyle retail group has based the plan on three strategic pillars covering efficiency, evolution, and expansion across its brand portfolio, store footprint and, scaled retail platform.
The plan follows a financial year 2025 base of $1.5b in sales, $110m in EBIT, approximately 900 stores, 30 brands, and 13 million pairs of shoes sold.
Accent enters FY27 with a pipeline of earnings improvement initiatives from business closures, The Athlete’s Foot franchise reacquisitions, targeted cost efficiencies, and a stronger Australian dollar assumption.
Regional Lifestyle Brands Leader
The group’s 2030 plan aims to position Accent as Oceania’s leading destination for performance and lifestyle brands connecting with customers across physical stores, digital channels, and wholesale networks.
Accent operates approximately 900 stores across Australia and New Zealand, maintains relationships with more than 3,000 wholesale partner doors, and runs 31 websites.
Its sales mix spans multi-brand retail, distributed and vertical brand retail, and distributed and vertical brand wholesale.
The group has also built 10m known customer profiles over the past three years, including 5m active customers in the 12 months to 31 March 2026.
Cost Savings Initiatives
Accent is targeting $40m of gross cost savings initiatives, with approximately $30m actioned for FY27 and a further $10m targeted through to financial year 2028, with AI-oriented projects being deployed to support future efficiencies.
Total net cost savings of $15m to $20m are forecast through to FY28 after inflation and comparable sales growth, including changes across support office teams, retail support, team costs, occupancy and marketing.
Accent expects an EBIT uplift of $16.2m FY27 from closed loss-making businesses , and another $7m by FY30 from store lease renewals, avoided losses, lease negotiations and store performance improvement initiatives.
The group closed or is closing 39 stores across financial years 2025 and 2026 where sustainable rent outcomes could not be agreed with landlords, with a further 102 stores under review as they approach lease renewal decision points.
The Athlete’s Foot Growth
The Athlete’s Foot franchise reacquisition program forms a central part of the evolution pillar.
Accent expects the buyback program to deliver approximately $14m in incremental EBIT by FY30, supported by a forecast $50m investment in reacquiring franchisees between FY27 and FY30.
Thirty franchised stores remain to be reacquired over the period.
The banner delivered average comparable growth of 5% per annum from financial year 2022 to financial year 2025, supported by a replacement-driven product range, premium service experience and growing demand for technical performance footwear.
Sports Direct Roll-Out
Sports Direct provides the major expansion lever in Accent’s plan, with the group targeting 30 stores across ANZ within the next three years and 50 to 100 stores over time.
The brand has launched with two stores and an online channel, with annualised run-rate sales rising from $7m at launch to more than $15m.
Accent is targeting eight Sports Direct stores by December 2026.
Longer-term targets include sales of more than $6,000 per square metre, average store sizes around 1,100sq m, 35% to 40% penetration from vertical, distributed and Frasers Group brands, and EBIT margins of 7% to 10%.
Vertical and Distributed Brands
Accent plans to continue building sales and earnings through sport, vertical-owned, and distributed brands.
These include Vans, HOKA, Skechers, Lacoste, Nude Lucy, Timberland, Dr Martens, and ODE.
Vertical-owned brands delivered a compound annual growth rate of 15% from financial year 2023 to the 12 months ended 31 March 2026, while sports banners grew at 9% across the same period.
HOKA brand awareness and sales have grown more than threefold during the latest distribution phase, with Sydney and Brisbane flagship stores planned to further lift awareness.
Nude Lucy has grown from $32m in sales in financial year 2023 to approximately $70m in sales and more than $10m in EBIT over the latest 12-month period.
Highly Experienced Team
Accent chief executive officer Daniel Agostinelli said the company had the management depth, store network, and team base needed to deliver the growth plan.
“The company is well positioned for growth, backed by highly experienced management and more than 9,000 team members in our stores and support office,” Mr Agostinelli said.
“The entire team is focused on serving our customers and delivering the growth plan to drive long term shareholder value.”
The group has paid more than $500m in dividends over the past decade and has sufficient capital and projected future cash flows to fund the growth strategy to 2030, including the Sports Direct roll-out, The Athlete’s Foot acquisitions and base business growth.
