Footwear retailer Accent Group to shutter 17 Glue stores as it eyes profitability

Australia’s largest footwear retailer Accent Group will shutter 17 under-performing Glue stores as it aims to make the youth apparel brand profitable this financial year.

Accent — which is also behind The Athlete’s Foot, upmarket running shoe brand Hoka, HypeDC, Platypus and womenswear label Nude Lucy — revealed the store closures would hit full-year earnings by $14.2 million.

If it weren’t for this charge, Accent would be expecting group earnings for the past financial year to be in the range of $123.2m to $125.2m. Earnings before interest and tax for the full-year ended June 30 is now expected to be between $109m and $111m.

Glue has more than 30 stores across South Australia, Victoria, New South Wales and Queensland. It is not yet known which of these stores will be affected.

The closures will result in the Glue business consisting of 18 stores, including digital. Despite the negative news, Accent shares closed up 10.2 per cent at $2.16.

Accent chief executive Daniel Agostinelli said trading conditions across the group improved in the second half of the year. For the full-year, total like-for-like sales are up 1.7 per cent on the prior year.

“I am pleased with our retail performance in H2 where the company continued to experience strong momentum in Skechers, The Athlete’s Foot, Hype DC, Stylerunner, Nude Lucy, and Hoka amongst others,” he said.

“The decision to exit the 17 under-performing stores will allow the Glue store management team to focus on a profitable business comprising 18 stores including digital.”

Accent will release its full-year results on August 23.

It was also good news for fellow retailer Dusk as a guidance and trading update for the past financial year lit a raging fire under its shares.

Total sales are expected to hit at about $126m, 8.2 per cent below the previous financial year results.

Underlying earnings are expected to be in the range of $6.2m to $6.4m, compared with the $16.5m the prior year. Dusk will release its full-year results on August 29.

The home fragrance and candles retailer said total sales for the second half of fiscal 2024 were 5.8 per cent lower but it was an improvement from a 9.7 per cent decline in the first-half.

Dusk said the improved performance over the period reflected the implementation of various strategic initiatives which focused on product rejuvenation, tactical and disciplined promotional activity, as well as enhanced execution of its online channel.

It also gave a trading update for the first two weeks of the 2025 financial year, with total sales up 28 per cent on the prior corresponding period.

While the company expects sales growth to moderate as the half progresses, the strong start to the new financial year provided confidence in its strategy and was a “great boost to the energy of our team”.

Dusk attributed the strong start to the fiscal year to the launch of its range with Allen’s Lollies.

Dusk chief executive Vlad Yakubson said the past financial year had been a time of transformation for the retailer as it “laid the foundations for the rejuvenation of the business”.

“Looking ahead to FY25, we are in a strong financial position and our inventory is clean and well balanced,” he said.

“We continue to focus on delivering product innovation and the latest trends to our customers on a regular basis.”

Shares in Dusk closed up 29.7 per cent to 76.5¢.