Accent's wholesale business has slowed down majorly, and it has also seen its same-store sales fall 2% so far this year.
👉 Background: Accent Group is one of the biggest retail groups in Australia with many favourite brands under their ownership, such as Glue stores, Hype, Platypus, and Stylerunner. Accent was on a tear last year with a total sales jump of nearly 24%.
👉 What happened: Since the new financial year ticked over, it's been another story—Accent's wholesale business has slowed down majorly. And, it has also seen its same-store sales fall 2% so far this year.
👉 What else: After these results, investors have been re-evaluating the company's prospects and have smashed the share price down by 10%.
💡Same-store sales is the revenue generated by a company's existing stores over a certain period. This excludes any income from new stores opened during that period.
💡This metric is crucial for investors, especially in a company like Accent Group that is rapidly expanding its store count. In fact, Accent opened 80 stores in the past 12 months to over 800 stores. So, that means 10% of all their stores were actually opened in the last 12 months.
💡The same-store sales number will show the organic growth and true consumer demand. And, that means investors can see whether growth is driven by a growing market share or it's just because of the expanding number of stores.
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