Accent Group (AX1) investor relations material

2030 growth strategy and vision

• Targeting AUD 1.9 billion+ in sales and 9%+ EBIT margin by 2030, with a personal ambition to reach AUD 2 billion in sales and ~950 stores, up from ~900 in FY25.

• Strategy centers on efficiency, evolution, and expansion, including cost reductions, brand rationalization, and new store rollouts, with a focus on Sports Direct and vertical brands like Nude Lucy and Ode.

• Sports Direct rollout aims for 30 stores by 2026 and 50–100 stores long-term, leveraging strong early performance and landlord interest.

• Ongoing investment in digital, with online sales now over AUD 300 million and more than 20% of group sales, and 2.9 million online orders annually.

• Seeks further brand distribution opportunities and continued digital channel growth, expanding into adjacent categories like apparel.

Financial guidance and cost efficiency

• AUD 30 million in cost efficiencies targeted for FY 2027 and an additional AUD 10 million for FY 2028, with net savings of AUD 15–20 million after inflation.

• Cost savings driven by support office reductions, offshoring, AI adoption, improved store rostering, and aggressive lease negotiations.

• Rationalization of underperforming brands and stores (e.g., OZSALE, Superga, Glue Store) to deliver AUD 16 million EBIT uplift in 2027 and targeting AUD 7 million more by FY30.

• Plan to open up to 20 stores per year across growth brands, reallocating capital from closures to higher-return areas.

• Decision-gate approach at lease renegotiation to ensure sustainable rent outcomes.

Market positioning and business model evolution

• Holds leading market share in footwear, with 900 stores and access to 10 million customers, 5 million of whom are active in the last twelve months.

• Integrated omni-channel model combines physical stores, 31 websites, and a strong logistics network.

• Distributed brands account for nearly 49% of sales, third-party brands 42%, and vertical brands 9%, with vertical brands expected to grow.

• Strong partnerships with global brands (e.g., Skechers, Vans, Dr. Martens, HOKA) and ongoing negotiations for new distribution agreements.

• Maintains a resilient, flexible portfolio spanning premium, lifestyle, and value segments, with a focus on customer satisfaction and innovation.