Accent Groups Strong FY23 Performance Drives Share Price Surge on Dividend Announcement

Accent Group Limited (ASX: AX1), a prominent footwear and retail company, has reported exceptional financial results for the fiscal year 2023 (FY23), leading to a significant boost in its share price. The company's total sales for the period reached $1.57 billion, marking a remarkable 24% increase compared to the previous year. Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stood at $298.2 million, demonstrating a robust surge of 39.6%, while Earnings Before Interest and Tax (EBIT) skyrocketed by 122.9% to reach $138.8 million. This remarkable performance translated to a Net Profit After Tax (NPAT) of $88.7 million, an impressive leap from the $31.5 million reported in FY22.

Source: Kapitales Research

With these outstanding financial figures, Accent Group announced a fully franked final dividend of 5.5 cents per share. This dividend will culminate in total dividends of 17.5 cents per share for FY23, as compared to the 6.5 cents per share declared in the previous fiscal year.

Accent Group CEO, Daniel Agostinelli, attributed the remarkable results to the company's unwavering focus on customer satisfaction, innovative product offerings, and prudent investment strategies. Agostinelli also highlighted that the FY23 performance continued the trend of consistent profit growth achieved in five of the last six financial years.

The company's operational review indicated robust growth across various metrics. Total owned sales amounted to $1.39 billion, a significant rise of 26.3% from the previous year. Online sales contributed significantly, constituting 19.1% of total retail sales, and Like for Like (LFL) retail sales for the year exhibited an impressive 10.2% growth. Notably, inventory levels were effectively managed, resulting in a clean aged inventory profile.

Accent Group's investment plans for future growth include opening at least 50 new stores in FY24, capitalizing on the strength of its existing brands, enhancing its omnichannel capabilities, and driving improvements in customer loyalty programs.

With the positive financial outcomes, Accent Group has not only impressed its shareholders but also demonstrated its resilience and adaptability in a challenging economic environment. The company's commitment to innovation, customer satisfaction, and strategic growth positions it favorably for continued success in the retail sector.

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