Accent Group Ltd · ASX:AX1
Accent — H1 FY2020 Earnings Presentation
24 slides from Accent's earnings presentation, Feb 19, 2020
Slide 1: Results Presentation Half Year Ended 29th December 2019
RESULTS PRESENTATION HALF YEAR ENDED 29TH OF DECEMBER 2019 Accent Group Limited H1 FY2020 Results Presentation 1 1
Slide 2: Table of contents
Table of contents Item Page Results Summary Page 3 Retail 7 Wholesale & Vertical Brands 10 Growth Plan 12 Dividends, Trading Update & Outlook 16 Appendix 18 Accent Group Limited H1 FY2020 Results Presentation 2 1
Slide 3: Record H1 FY20 profit
Record H1 FY20 profit1 Key Metrics Pre AASB 16 Pre AASB 16 % $’000’s H1 FY20 H1 FY19 Change EBITDA $67,704 $61,260 +10.5% EBIT $52,642 $47,377 +11.1% PBT $50,855 $45,789 +11.1% NPAT $35,288 $32,159 +9.7% Owned Sales $444,170 $389,391 +14.1% Total Sales (inc TAF $507,894 $458,084 +10.9% Franchisees)
Slide 4: Continued innovation for growth
Continued innovation for growth Store growth: opened 51 new stores (including new store formats), 8 closures, now more than 500 stores in the Group. Digital growth: up 33% on H1 FY19, customer personalisation journey continues. The Athlete’s Foot (TAF) corporate stores: 66 corporate stores, up from
Slide 5: H1 FY20 summary of financial performance
H1 FY20 summary of financial performance Financial Summary1 – Comparable Financial Information Operating Highlights Pre AASB 16 Pre AASB 16 % o Total company owned sales of $444.2m, Profit & Loss ($000's) H1 FY20 H1 FY19 Change up 14.1% on prior year. Owned Sales 444,170 389,391 14.1% o Continued di
Slide 6: Retail
Retail
Slide 7: Retail
Retail Key Financial Highlights Commentary Owned Retail Sales up 15.4% to $382m o LFL retail sales up 2.4%1. LFL Sales1 up 2.4% o Total digital sales grew by 33%. o Skechers, Vans, Dr Martens, Platypus, Caterpillar and Store Network2 Subtype traded strongly. 538 479 o Hype continues to be a key focu
Slide 8: Digital and customers
Digital Contactable customers Commentary 6.2 o Total digital sales grew by 33% for FY20, this was on top 4.8 of the 94% growth in the same period LY. Customers (Millions) 3.5 o TAF digital sales grew by 44%. Sales o 19 websites now in operation across AU & NZ. o Launch of Crèmm, premium online footw
Slide 9: Wholesale & Vertical Brands
Wholesale & Vertical Brands Accent Group Limited FY2019 Results Presentation 9
Slide 10: Wholesale & vertical brands
Wholesale & vertical brands Key Financial Highlights Commentary Wholesale Sales up 6.7% to $62.2m o Strong sales performance from Vans, Dr Martens, Merrell and Skechers. Vertical Distribution and Wholesale o Skechers wholesale sales up on last year whilst the Skechers store network rollout continues
Slide 11: Growth Plan
Growth Plan
Slide 12: Growth plan update
Growth plan update 1 New Stores 2 The Athlete’s Foot 3 Digital & Crèmm o At least 70 new stores (excluding o 70 corporate stores expected by the o Targeting 20% of sales within the next closures) planned to open in FY20 end of FY20. 3 years. across all banners. o The 2 remaining New Zealand o Ongoin
Slide 13: Growth plan update (cont'd)
Growth plan update (cont’d) 4 Vertical Product 5 The Trybe 6 PIVOT o Continue to expand this program in o The Group has now opened 7 stores o First 3 stores confirmed. FY20 and beyond. (Highpoint (VIC), Fountain Gate (VIC), Werribee (VIC), Macarthur Square (NSW), Bondi Junction (NSW), o Shellharbour
Slide 14: Growth plan update (cont'd) Stylerunner
Growth plan update (cont’d) 7 Stylerunner o Premium digital business in the fast- growing women’s athleisure segment. o Brand led with a focus on growing brand collaborations and exclusive strategy to deliver a differentiated consumer offer. o Leveraging Accent Group’s trading terms and shared servi
Slide 15: Dividends, Trading Update & Outlook
Dividends, Trading Update & Outlook Accent Group Limited FY2019 Results Presentation 15
Slide 16: Dividends, trading update and FY20 outlook
Dividends, trading update and FY20 outlook o Accent Group has announced an interim ordinary dividend for FY20 of 5.25 cents per share, fully franked, payable on 19 March 2020 to shareholders registered on 5 March 2020. Dividends o The interim dividend is up 16.7% on prior year (H1 FY19, 4.50 cents)
Slide 17: Appendix
Appendix Accent Group Limited FY2019 Results Presentation 17
Slide 18: Accent Group overview
Accent Group overview Accent Group is the largest retailer and wholesaler of premium lifestyle footwear in the Australia and New Zealand region. Owned Multibrand Retail Banners Vertical Retail & Wholesale Distribution Retail and Accent has the exclusive rights to distribute these brands in Australia
Slide 19: Impact of new lease accounting standard AASB 16 Leases
Impact of new lease accounting standard AASB 16 Leases The implementation of AASB 16 Leases has significantly changed reported results however the standard does not have an economic impact on the Group, its cashflows, debt covenants or shareholder value. Below is a summary of the H1 FY20 reported re
Slide 20: Gross margin and FX rate
Gross margin and FX rate Statutory Gross Margin % and FX Rate (AUD/USD Cover) 0.80 57% 0.79 0.78 56% FX Rate (Forward USD Cover) Gross Margin % 55% 0.76 0.76 54% 57.3% 0.74 0.74 56.7% 53% 0.73 0.72 54.5% 52% 52.8% 0.70 0.70 51% 51.2% 50% 0.68 FY16 FY17 H1 FY18 H1 FY19 H1 FY20 Gross Margin FX rate (F
Slide 21: Store network and distribution agreements
Store network and distribution agreements Store Network1 Dec-19 Other/S’Run Store Network1 TAF Platypus Skechers Vans Timberland Dr Martens Merrell Hype Subtype Trybe PIVOT Total ner Stores at End of 143 114 94 24 7 4 20 65 2 3 3 479 FY19 FY20 Stores Opened 7 10 17 2 7 5 3 51 Stores Closed (4) (1) (
Slide 22: Balance sheet
Balance sheet Balance Sheet Commentary Post AASB 16 Pre AASB 16 Pre AASB 16 o Inventory increased due to investment in new $000's H1 FY20 H1 FY20 H1 FY19 stores and TAF corporate store acquisitions, along with increased stock in transit due to the Trade receivables and movement in Chinese New Year (
Slide 23: Cash flow
Cash flow Cash Flow – Comparable Financial Information Commentary o Increase in property, plant and equipment driven Pre AASB 16 Pre AASB 16 from significant investment in 51 new stores and 18 H1 FY20 H1 FY19 refurbishments, compared to 35 new stores and 15 $000's refurbishments in H1 FY19. EBITDA 6
Slide 24: Notice and Disclaimer
Notice and Disclaimer o This presentation contains summary information about Accent Group Limited which is current as at the date of this presentation. o This presentation contains certain forward-looking statements, including indications of, and guidance on, future earnings and financial position a