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Accent Group Ltd AX1

Morningstar Rating
A$2.03 −0.02 (0.98%)
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Company Report

Australian Retailing: Discretionary Sector Rallying on Overblown Tailwinds

Talk of interest rate cuts and impending tax cuts is sparking a rally in consumer cyclicals. We agree these factors improve the near-term outlook for consumer spending, with cyclical retailers more exposed. We expect the combined impact of fiscal and monetary tailwinds to underpin mid-single-digit growth in total retailing sales in the medium term—compared with our estimate of only 2% growth in fiscal 2024. But underlying our near-term forecast is a significant divergence across categories, with sales in cyclicals virtually flat and defensives up 4%.

Price vs Fair Value

AX1 is trading at a 17% discount.
Price
A$1.99
Fair Value
A$2.10
Uncertainty
High
1-Star Price
A$8.68
5-Star Price
A$7.63
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

If Accent can keep acquiring new, exclusive distribution agreements, like the recent deal with Hoka, it could continue to rollout stores at a time when many retailers are shrinking their physical network.

Bears

Accent’s rapid expansion in recent years creates a risk of potential store closures.

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Trading Information

Previous Close Price
A$2.05
Day Range
A$2.032.09
52-Week Range
A$1.512.62
Bid/Ask
A$2.02 / A$2.04
Market Cap
A$1.14 Bil
Volume/Avg
1.3 Mil / 1.3 Mil

Key Statistics

Price/Earnings (Normalized)
12.74
Price/Sales
0.83
Dividend Yield (Trailing)
6.90%
Dividend Yield (Forward)
8.37%
Total Yield
6.90%

Company Profile

Accent Group is a retailer and wholesaler of footwear and apparel. It is the exclusive distributor of range of global brands, including Skechers, Vans, and Doctor Martens in Australia and New Zealand. Accent operates both monobranded stores and multibrand banners, such as Platypus, Hype DC, and The Athlete’s Foot. With a network of more than 700 physical stores and 30 websites, Accent is the largest footwear retailer in Australia.
Sector
Consumer Cyclical
Industry
Apparel Retail
Stock Style Box
Small Core
Total Number of Employees
2,180
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Name
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
IDEXY
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IDEXF
Industria De Diseno Textil SA Share From SplitWwmb$157.1 Bil
TJX
TJX Companies IncWxfxmsxmlNpmw$115.6 Bil
FRCOY
Fast Retailing Co Ltd ADRZrfq$94.7 Bil
FRCOF
Fast Retailing Co LtdFkz$94.7 Bil
ROST
Ross Stores IncGsqsfwgVtfx$49.4 Bil
LULU
Lululemon Athletica IncPbwzbcmsFjxnnk$49.2 Bil
BURL
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GPS
Gap IncGjrjpvcdGvph$10.3 Bil
URBN
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