Accent Group sells footwear retailer The Trybe to Munro Footwear Group
Accent Group (ASX: AX1) has sold its kids footwear brand The Trybe to Munro Footwear Group (MFG). The deal was announced alongside Accent's FY24 financial results, which showed a slight increase in sales.
Transaction snapshot
Deal value: N/A
Deal multiples: N/A
Deal type: Acquisition
Investors: Munro Footwear Group
Accent Group reported a 2.5% increase in FY24 sales to $1.61 billion. The company plans to open more stores for its Stylerunner, Skechers, HOKA and UGG brands. The Trybe ownership transition was completed on 16 August.
Accent Group stated the financial impact of the sale is minimal. It will be recorded in the financial year ending 30 June 2025.
The company is also ending its distribution of CAT workwear shoes. Its six remaining CAT stores will close or transition throughout FY25. This move is not expected to have a significant financial impact.
Accent Group CEO Daniel Agostinelli said the company regularly reviews its business units to boost investor returns. This process led to the closure of 17 underperforming Glue stores and the sale of The Trybe.
The Trybe started as an online marketplace for children's shoes five years ago. It has since grown to 16 physical stores. Accent Group will continue to sell children's shoes through its other brands, including The Athlete's Foot, Skechers, Platypus and Hype DC.
Accent Group's net profit after tax (NPAT) fell 33% to $59.5 million. Net debt increased slightly to $122.2 million. Despite these figures, Agostinelli said he was pleased with the results, given the tough consumer environment.
The company plans to open at least 50 new stores in the current financial year, including about 10 Stylerunner locations. Accent Group currently has 895 stores, including online outlets.
For the first seven weeks of FY25, total sales are up 8.7% year-on-year. Like-for-like retail sales have increased by 3.5%.
Munro Footwear Group, the buyer of The Trybe, owns brands such as Midas, Mathers, Ziera, Colorado, Diana Ferrari and Rockport. MFG co-CEO Marcus Bartlett said The Trybe will complement their existing back-to-school program and give them access to top sneaker brands.
MFG plans to work with Accent Group to ensure a smooth transition of The Trybe brand. They expect the full handover to be completed by the end of October 2024. Bartlett expressed confidence in scaling The Trybe beyond its current 16-store footprint.
