HypeDC owner Accent Group posts sales boost but margins squeezed

Sales at Accent Group lifted at the start of the financial year, but the nation’s largest footwear retailer warns margins are being squeezed due to heavy discounting.

A trading update on Thursday revealed sales for the group — which is behind The Athlete’s Foot, running shoe brand Hoka, HypeDC, Platypus, Glue and womenswear label Nude Lucy — grew 6.8 per cent for the first 20 weeks of fiscal 2025. Like-for-like sales were up 3.5 per cent over the period.

But for the first 18 weeks, Accent’s gross margin fell 70 basis points compared with the same time last year, impacted by increased promotional trading across the retail sector.

Group chief executive Daniel Agostinelli said retail sales for the first 20 weeks continued to be in line with like-for-like sales reported in the first seven weeks of the financial year.

The retailer continued to observe customers were responding to promotion and value offers, with an associated impact to gross margin, he said.

Mr Agostinelli said its new store opening program was on track and the company expects to open about 40 locations in the first half of the year.

Meanwhile, the planned closure of 17 under-performing Glue stores was progressing, with eight stores closed to date.

“The group’s in-stock position along with sales and operational plans are well set heading into the largest trading months of the year,” Mr Agostinelli said.

Ahead of the company’s annual general meeting on Thursday, Accent announced its intention to appoint former Sports Direct chief executive and Frasers Group regional general manager Dave Forsey to the board.

It comes after London-listed Frasers — behind Sports Direct — snapped up retail billionaire Brett Blundy’s 14.7 per cent stake in Accent in late August.