ANNUAL
REPORT
2025
2
Chairman and Chief Executive Officers’ Report
5
Our Brands
10
Sustainability Report
19
Directors’ Report
28
Remuneration Report
45
Auditor’s Independence Declaration
46
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
47
Consolidated Statement of Financial Position
48
Consolidated Statement of Changes in Equity
49
Consolidated Statement of Cash Flows
50
Notes to the Financial Statements
85
Consolidated Entity Disclosure Statement
86
Directors’ Declaration
87
Independent Auditor’s Report to the Members
of Accent Group Limited
93
Shareholder Information
95
Corporate Directory
CONTENTS
Accent Group Limited (AX1) is a market
leading digitally integrated retail and
distribution business in the performance
and lifestyle market sectors.
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Annual Report 2025
AT A
GLANCE
861
RETAIL STORES
31
WEBSITES
12
GLOBAL BRANDS
RETAIL BANNERS
18
>10M
CONTACTABLE
CUSTOMERS
2
Accent Group Limited
temptation to make short term
decisions on customer service
levels and marketing to drive
short term results to the future
detriment of customer loyalty,
customer experience and long-term
profit growth.
Whilst the results delivered in
FY25 were below expectations,
the business made good progress
on strategic deliverables including
concluding the long-term strategic
transaction with Frasers Group plc
(“Frasers”) to launch the Sports
Direct business across Australia and
New Zealand, acquiring 2 new global
distributed brands, Lacoste and
Dickies, closing underperforming
Glue stores, growing Nude Lucy and
Stylerunner and managing costs
through non-customer facing CODB
initiatives. The Company remains
focused on the long-term objective
of delivering profits and growing
shareholder value and the Board
commends the efforts of the Accent
Group team throughout the year.
Dear fellow Shareholders,
We are pleased to present to you
the 2025 Annual Report for Accent
Group Limited (Accent Group,
Group or Company).
In the context of a challenging
consumer environment, Accent
Group did not deliver the results
that we hoped could be delivered
in FY25. Total sales for the year
were $1.62 billion with net profit
after tax of $57.7 million. Results
were impacted by low overall
growth in the discretionary lifestyle
footwear market and a prevailing
promotional trade environment
putting downward pressure on gross
margins. Cost of doing business
(CODB) was tightly managed
but not sufficient to offset lower
sales and reduced gross margins.
In the current environment, the
management team maintained
its focus on the controllables
including driving customer service
and experience, digital and store
execution and innovating product
ranges to ensure strong brand
health. The business resisted the
$1.62b
Total Sales
(incl. TAF)
$1.46b
Accent Group
Sales (company
owned)
CHAIRMAN
AND CHIEF
EXECUTIVE
OFFICERS’
REPORT
David Gordon
Chairman
Daniel Agostinelli
Chief Executive Officer
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Annual Report 2025
OPERATING REVIEW
Accent Group remains committed
to a long-term strategy of delivering
customers a best in class integrated
digital and instore experience.
Owned sales of $1.5 billion in FY25
were up 1.6% on the prior year. The
owned sales result was supported
by continued online sales growth
and our integrated omnichannel
capability.
Retail & Wholesale
The Group opened 54 new stores in
FY25 and closed 57 stores. Of the 57
closed stores, 25 were due to the exit
from two brands, The Trybe (17) and
CAT (8). A further 14 stores related
to the announced plan to close 17
underperforming Glue stores. The
remaining 18 store closures were
made where the required investment
return outcomes could not be
achieved.
FINANCIAL REVIEW
The Group’s net profit after tax for FY25 was $57.7 million. Your Board has declared a final fully franked dividend of
1.50 cents per share, which brings the total dividends declared during the year to 7.00 cents per share.
Financials
($ millions)
FY25
FY24
Growth
Total Sales to Customers (incl. TAF)1
1,621
1,608
+0.8%
Accent Group Sales (company owned)
1,458
1,435
+1.6%
EBITDA
288.8
293.7
-1.7%
EBIT2
110.2
110.4
-0.2%
NPAT
57.7
59.5
-3.1%
EPS (cents per share)
10.12
10.61
-4.6%
Dividends (cents per share)
7.00
13.00
-46.2%
1
Includes The Athlete’s Foot franchise store sales (non-IFRS measure).
2
Includes $3.3 million of non-recurring items relating to the reversal of a historical impairment of the Hype DC brand carrying value of $9.7 million,
the impairment of a number of underperforming Vans stores of $3.8 million and one-off costs and trading losses of $2.6 million relating to the
discontinuation of the CAT brand distribution and the divestment of The Trybe.
Owned retail sales grew by 2.5% in
the year. Thematically the Group’s
sports-oriented banners performed
well including The Athlete’s Foot,
HOKA, Merrell, and Saucony.
Hype DC had another record year,
resulting in the reversal of a prior
year impairment to brand value.
In apparel, both Nude Lucy and
Stylerunner continued to grow.
CHAIRMAN AND
CHIEF EXECUTIVE
OFFICERS’ REPORT
4
Accent Group Limited
Slower consumer spending in the broader lifestyle
footwear market impacted wholesale sales as well as
retail performance in Vans, Platypus and Skechers.
The Group signed new distribution agreements for
Lacoste and Dickies during the year, which will start
operations in FY26. The Lacoste agreement has an initial
term of 8 years, while Dickies has an initial 5-year term.
We are pleased to welcome these global brands to our
portfolio and grow our business in the lifestyle apparel
market. The distribution agreements for Merrell and
Timberland were also renewed for further extended
terms and the decision was made not to continue with
the Superga distribution agreement beyond its expiry
at the end of December 2025.
This continued portfolio renewal in brands and retail
enables capital and focus to be applied to the highest
performing and growth businesses.
Strategic Transaction with Frasers Group plc
In April 2025, the Group announced a strategic
transaction with Frasers Group that will see the Group
bring Sports Direct to the Australian and New Zealand
markets. The Sports Direct opportunity builds on the
Group’s growth plans, while incorporating a new business
in the sports and athletic market. The Group has the right
to launch and operate the Sports Direct business for an
initial 25-year term with plans for an initial roll-out of at
least 50 stores over the next 6 years. The Company sees
the long term opportunity for 100 plus Sports Direct
stores across Australia and New Zealand. It also provides
the Group with access to Frasers owned brand portfolio
and an enhanced portfolio of third-party brands, such
as Nike, adidas, Asics and others.
At the same time, Frasers acquired a strategic
shareholding in the Group, replacing BBRC as the
Group’s largest shareholder.
SUSTAINABILITY
Accent Group continued to focus on its sustainability
efforts including preparing for the mandatory climate-
related financial disclosures that will come into effect
for the Group in financial year 2026. The Group’s
sustainability efforts are set out on pages 10-18 of
this Annual Report.
BOARD CHANGES
As previously announced, David Gordon will retire from
the Board at the conclusion of the 2025 Annual General
Meeting. He will be succeeded by Lawrence Myers,
allowing for a seamless transition.
With the strategic relationship with Frasers Group, we
welcomed one new director to the Board, David Forsey.
Mr Forsey is a long-term Frasers’ senior executive who
brings considerable global retail experience to further
enhance the Board’s broad range of skills, experience
and diversity and we look forward to his valuable
contributions to the Board, especially as we roll out the
Sports Direct business in Australia and New Zealand.
Daniel Agostinelli said “We are grateful to have been
the fortunate beneficiaries of Mr Gordon’s expertise and
exceptional contribution to the Board during a period
of rapid growth, and we acknowledge and thank him for
his outstanding service and guidance to Accent Group.
We also look forward to working with Lawrence Myers
in his new role and welcome David Forsey.”
Brett Blundy also retired from the Board in August 2024.
CONCLUSION
FY25 year proved to be a challenging year characterised
by a cautious consumer discretionary environment, with
the final results ending below what we hoped could
be achieved. In this context the business continues
to focus on maximising annual performance and
delivering appropriate long-term growth and improved
shareholder returns. We are particularly excited about
the opportunity that Sports Direct brings to the Group
over the coming years.
David Gordon
Chairman
Daniel Agostinelli
Group Chief Executive Officer
Skechers is a global leader in lifestyle
and performance footwear. Driven
by innovative comfort technology,
Skechers offers a diverse range of
footwear and apparel for men, women
and children. We currently operate
over 205 Skechers stores across
Australia and New Zealand.
With over 205 stores across Australia
and New Zealand, Platypus has
become the region’s largest multi-
branded sneaker destination—
offering the freshest footwear from
the world’s biggest brands.
Hype DC is the destination for the
latest exclusive footwear in Australia
and New Zealand. They specialise in
premium sneakers, short-run releases
and timeless classics. Established 20
years ago, Hype DC is the longest-
standing, Australian-owned footwear
retailer with over 80 locations.
With over 155 stores across Australia
and New Zealand, The Athlete’s Foot
is one of the region’s largest specialty
athletic and lifestyle footwear
retailers. They are well known for their
exceptional in-store customer service
experience and fitting technology.
Stylerunner offers a highly edited
set of global brands and curated
collections of women’s activewear
and sneakers. Stylerunner opened its
first store in 2020 and now operates
34 retail stores across Australia and
New Zealand.
The Dr. Martens range of footwear
was born in 1960. It is a representation
of rebellion and free-thinking youth
culture and made like no other shoe
on earth. We now operate 27 stores
across Australia and New Zealand.
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Annual Report 2025
OUR BRANDS
OUR BRANDS
The Vans brand evolution continues,
with over 35 Vans stores across
Australia and New Zealand.
From its foundation as an original
skateboarding company to its
emergence as a leading action sports
brand, and rise to become the world’s
largest youth culture brand.
Merrell is the world’s leading brand of
performance outdoor and adventure
footwear. Constantly innovating new
technologies and products to give
you the confidence to head outdoors
and go, seek and do. We operate over
15 Merrell stores.
Inspired by the company’s New
England heritage, Timberland is a
brand true to the outdoor lifestyle.
It is a fashion staple on a global scale.
We operate 7 Timberland stores.
Glue Store is one of Australia’s leading
retailers for men’s and women’s
apparel. Delivering on trend clothing,
shoes and accessories from an
aspirational brand assortment that
empowers individuals to be fashion
leaders. We operate 20 stores in
Australia.
Timberland Pro was born in 1999 and
brings premium and durable products
to professional tradespeople,
focusing on protection, performance
and comfort. The brand is committed
to delivering a greener future
by striving to create net positive
emissions by 2030.
Saucony is synonymous with high
performance footwear and is a
leading global running lifestyle brand.
This focus and passion drives Saucony
to offer best in-class running shoes,
apparel and timeless retro footwear.
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Accent Group Limited
OUR BRANDS
Founded on FEEL, UGG is dedicated
to long-lasting quality and enduring
designs that transcend trends. Bold,
provocative, and real, UGG is a
purpose-driven brand for those who
refuse to be defined by convention.
We now have 6 stores across Australia
and New Zealand.
Born in 2010 in Sydney, Australia,
Nude Lucy provides a premium,
everyday wardrobe inspired by an
inherently Australian relaxed way
of life. Over a decade later, it is now
firmly established as a sought-after,
trustworthy and timeless destination
for casual wear, made by women, for
women with over 40 stores.
HOKA offers consumers performance
enhancing footwear for all terrains.
Established in 2009, HOKA delivers
classic and new styles of running,
walking, trail and hiking shoes.
Designed not only with eye-catching
colours but with the latest technology-
designed shoes that provide ultimate
comfort. We now have 11 stores across
Australia and New Zealand.
The Alpha range of footwear offers
an extensive range of back to school
footwear, designed for active kids to
wear all day long. Durability, multi-fit
and versatility are key to the success
of this brand.
SUBTYPE is a destination for
premium sneakers and apparel that
blurs the lines between fashion
and street. SUBTYPE’s unique,
conceptual stores are a cultural hub
and curate a full collection of apparel
and footwear from established and
upcoming labels.
Founded in 2012, ARTICLE ONE’s
philosophy is to provide elevated
styles for the modern-day individual
which form the core of every
wardrobe. Every ARTICLE ONE piece
aligns with the distinctively relaxed
and effortless Australian sensibility
through fit, fabric, subtle detailing
and timeless colour palettes.
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Annual Report 2025
OUR BRANDS
Bold and edgy, Beyond Her is an
Australian fashion label known for
its strong 90’s vibe which combines
modern and vintage designs. A mix of
urban edge streetwear with elegant
and feminine fits that will take you
from casual and workwear to off-duty
and party outfits.
Made with the everyday traveller
in mind, Herschel’s collection of
bags and backpacks have been
thoughtfully designed. Combining
modern functionality with a touch of
nostalgia. Herschel is renowned for
their practical details; laptop sleeves,
hidden compartments and separated
sections for everything you need.
FIRST MSE is a brand that is bold,
confident and the new must-have
addition to the after-dark wardrobe.
With their range of clothing including
dresses and tops, FIRST MSE is
all about clean lines and sleek
silhouettes.
Lulu & Rose is a contemporary
women’s label inspired by nostalgia,
flirtation and femininity. Bringing out
the hottest trends and styles, Lulu
& Rose will keep your outfit on point
through all four seasons.
Sneaker LAB took its passion for
sneaker culture and matched it with
science, creating a natural cleaning
solution, that works. It is a proudly
South African brand that takes on a
fresh approach to shoe care to more
than 60 countries and counting.
Lacoste is a global lifestyle brand
founded in France in 1933 by
Rene Lacoste. It is sold in over 120
countries. Lacoste products include
sports and lifestyle apparel, footwear
and accessories.
8
Accent Group Limited
OUR BRANDS
Dickies, founded in 1922, is a global
lifestyle fashion and youth streetwear
brand. From it’s beginnings, Dickies®
products have been regarded as some
of the toughest in the industry with it’s
reputation for high quality garments.
Dickies products include apparel and
accessories in the street and lifestyle
fashion categories.
Sports Direct is a leading international
retailer of sports and fitness footwear,
clothing, and equipment. Whatever
your sport, style, or ambition,
Sports Direct offers the quality and
choice to make everyone feel like a
winner. Sports Direct is the ultimate
destination for sport and fitness,
serving customers across more
than 30 countries.
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Annual Report 2025
Our Environment
We care for our environment
Our People
Our people come first
Our Responsibilities
We act with integrity
OUR APPROACH TO
BUSINESS SUSTAINABILITY
At Accent Group, we recognise the importance of
integrating sustainable business practices across our
operations. We are focused on meeting regulatory
requirements, responding to stakeholder expectations,
and supporting long-term value creation for our
customers, team members, and shareholders.
Our Environmental, Social and Governance (ESG)
Framework, developed with input from team members,
advisors, and brand partners, continues to guide our
approach to sustainability in a way that is practical and
relevant to our business.
The Framework is structured around three pillars:
–
Our People are fundamental to our success, and
we aim to provide a safe, inclusive, and supportive
workplace.
–
Our Responsibilities reflect our commitment
to ethical practices, community support, and
safeguarding the information entrusted to us.
–
Our Environment focuses on reducing our
operational impacts and aligning with regulatory
and industry expectations.
Our sustainability agenda is supported by a
governance framework that ensures consideration
of environmental stewardship, health and safety,
corporate social responsibility, and public policy.
Oversight remains with the Audit and Risk Committee
and Board, ensuring our approach stays aligned with
evolving ESG standards and stakeholder priorities.
ACCENT SUSTAINABILITY PILLARS
“Make it Happen”
At Accent we
Sustainable
Product
Reduce & Recycle
Resources
Climate
Community
Partnerships
Ethical
Sourcing
Safety
Data
Security
Equality
& Diversity
Training
10
Accent Group Limited
SUSTAINABILITY REPORT
SUSTAINABILITY REPORT
OUR PEOPLE
Our team of over 8,600 employees across Australia and
New Zealand is central to the success of Accent Group.
Their commitment, capability, and energy underpin our
performance and culture. Our Cultural Commitments
shape the way we work, grounded in The Accent Way
— seven core principles that guide our leadership,
decision-making, and collaboration across the business.
These principles emphasise a customer-first mindset,
open communication, continuous learning, respect,
teamwork, and brand passion. Together, they reflect our
commitment to excellence, innovation, and a culture
where people thrive and succeed together.
TEAM ENGAGEMENT
Our annual Engagement Survey continues to be a
valuable tool in shaping and strengthening the culture at
Accent Group. Now in its fifth year, it reflects our ongoing
commitment to listening to and acting on employee
feedback. In FY25, we conducted an Engagement Pulse
Survey to gather insights into team sentiment. Based on
survey feedback, the FY25 Engagement Action Plans
focused on three core areas: Career and Development,
Reward and Recognition, and Communication — all
consistently identified as priorities by our people. With
these findings, our HR Business Partners worked closely
with the business divisions to turn these insights into
tailored action plans that address the unique needs of
each business.
HEALTH AND SAFETY
At Accent Group, we are committed to providing a safe
working environment and supporting the health and
wellbeing of our team members, customers, and visitors.
AUDIT PROCESS AND SAFETY GOVERNANCE
Our dedicated Loss Prevention & Safety Managers lead
occupational health and safety (OHS) risk mitigation
initiatives across the business. These include general
safety training, ladder safety, physical and mental
first-aid training, and promoting cross-functional
knowledge sharing.
In FY25, the team again completed over 600 loss
prevention and safety audits across our network. This
included follow-ups to the ladder audit program,
ensuring non-compliant ladders were identified and
replaced, and team members remain trained in safe
ladder use and hazard identification. As part of their
ongoing development, our Loss Prevention & Safety
Managers also undertook the WorkSafe Health and
Safety Representative course, further strengthening
their capability to support safety outcomes across
the business.
The Accent Group Safety Steering Group, led by the
General Manager – People & CX, plays a key role in
embedding safety practices across the organisation.
Meeting quarterly, the group provides oversight
and helps to escalate safety issues, bridging the gap
between site-based teams and management.
for the year ended 29 June 2025
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Annual Report 2025
SUSTAINABILITY REPORT
INCIDENT REPORTING
We continue to strengthen our Incident Reporting
program across the Group through our Zendesk
platform, which has improved reporting accuracy
and response times. Key incident reporting areas
include in-store injuries, serious workplace matters
(such as bullying, harassment or discrimination), and
customer aggression. In FY25, we enhanced our
training modules to improve understanding of what to
report, how to report, and why it matters—reinforcing
compliance and team accountability in identifying and
reporting incidents.
SAFETY TRAINING
All new team members across the Group are required
to complete our foundational safety training program
(HR101), which builds awareness of key occupational
health and safety responsibilities and risks. The program
covers essential topics including ladder safety, manual
handling, stress management, slips, trips and falls,
workplace violence, and incident reporting.
EMERGENCY RESPONSE TRAINING
MODULE & GUIDE
In response to rising incidents across the retail sector, in
particular in major metropolitan, shopping centres we
continued to cascade our Emergency Response training
module to team members and distributed a physical in-
store guide to all stores, support offices, and warehouses
across Australia and New Zealand. This initiative equips
teams with the knowledge and confidence to act quickly
and safely during critical events. The guide covers key
topics such as identifying emergency types (e.g. armed
threats, customer aggression, lockdowns), immediate
response actions, role-specific responsibilities,
communication protocols, post-incident support, and
store preparedness measures including drills and plan
reviews. Additionally, all stores received new Safety
Posters for their backrooms to improve visibility of
key procedures and reinforce safety awareness across
the network.
RESPECT AT WORK
In FY24, we introduced a Respect at Work training
module in response to the Anti-Discrimination and
Human Rights Legislation Amendment (Respect at
Work) Act 2022 (Cth). This training reinforces the
organisation’s positive duty to prevent workplace
misconduct and promote a respectful, inclusive
environment. Throughout FY25, we continued rolling
out the Respect at Work training, extending it to Area
Managers and developing a supporting policy to
strengthen our approach. We also rolled out a national
Group Sexual Harassment Prevention and Response
Plan, providing clear guidance and resources to support
our people in fostering safe and respectful workplaces.
Looking ahead, we plan to launch an online Respect at
Work Learning plan for our retail team members, with
tailored modules designed to embed these values at
all levels of the business.
PERFORMANCE AND PROGRESS
In FY25, Accent Group recorded a Lost Time Injury
Frequency Rate (LTIFR) of 6.1, up from 4.88 in FY24.
There were 45 accepted Workers Compensation Claims,
a 22.2% increase from 36 the previous year. This rise is
in part attributed to increased awareness of WorkCover
support, encouraging greater incident reporting. An
increase in physical incidents related to stock handling,
ladder use, manual handling, and slips, trips, and falls
were also observed. In response, we are enhancing in-
store induction and training programs, with a stronger
focus on these high-risk activities.
Total Recordable Injuries (TRI) rose slightly to 295 in
FY25, up 2.05% from 289 in FY24. This increase reflects
a growing workforce, the opening of additional retail
stores, and more accurate capture of data through
improved digital reporting. While this has resulted
in more incidents being recorded, it provides better
visibility of safety risks and enables more targeted
interventions.
Accent Group remains committed to improving safety
performance through proactive training, risk mitigation,
and ongoing monitoring. Health and safety governance
is overseen by our dedicated Loss Prevention and Safety
team, with regular reporting to the Group’s Audit and
Risk Committee.
for the year ended 29 June 2025
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Accent Group Limited
SUSTAINABILITY REPORT
DIVERSITY AND INCLUSION
At Accent Group, we are committed to fostering a workplace culture that values diversity and embraces inclusivity.
We believe our workforce should reflect the communities we serve, bringing together a variety of perspectives,
experiences, and backgrounds.
This commitment is supported by our Diversity and Inclusion Policy and Code of Conduct, which guide our approach
to creating an environment of respect, dignity, and openness. We recognise diversity across a broad range of dimensions,
including—but not limited to—age, gender, race, national or ethnic origin, physical and learning abilities, disability,
religion, language, family, marital status, and sexual orientation.
GENDER EQUALITY
Accent Group remains focused on improving gender equality across all levels of the organisation. Our Diversity and
Inclusion Policy requires the People and Remuneration Committee to recommend measurable objectives for diversity
to the Board annually and to monitor progress towards achieving them. In line with this, the Board achieved its target of
30% women’s representation by 2024, a goal established in 2021.
Accent Group submits an annual report to the Workplace Gender Equality Agency (WGEA) in accordance with the
Workplace Gender Equality Act 2012 (Cth). The most recent gender representation figures for the Australian business,
as at 31 March 2025, are as follows:
FY24
Total
number
% of
women
% of
men
FY25
Total
number
% of
women
% of
men
Board*
6
33%
67%
Board*
6
33%
67%
Senior managers**
115
49%
51%
Senior managers**
108
48%
52%
Other managers
942
72%
28%
Other managers
882
70%
30%
Other employees
6,845
66%
34%
Other employees
6,488
67%
33%
Total
7,908
66%
34%
Total
7,484
67%
33%
*
Non-Executive Directors.
** Senior managers are those individuals who participate in determining and implementing major operational and strategic initiatives at the business unit
level and are responsible for the results of their respective business units.
TRAINING AND
DEVELOPMENT
At Accent Group, we continue to invest in the growth
and capability of our people to drive performance and
deliver exceptional customer experiences. In FY25,
this included refreshed induction programs, targeted
training, and leadership development initiatives.
A redesigned induction program was launched across
several Accent divisions, with more to follow in FY26.
These digital modules reflect each brand’s unique
identity and include product knowledge, service
standards, and compliance training. The self-paced
format allows new team members to build confidence
before their first day, supported in-store by a digital
checklist for a blended learning experience.
Launched in February 2024, the Accent Leadership
Academy supports leaders at all levels—emerging,
existing, and senior—through a six-month, expert-
led program with one-on-one mentoring. In
FY25, 56 leaders graduated, strengthening our
leadership pipeline.
Our Rise program continued to develop casual team
members for future leadership roles, with 100 completions
to date. Of these, 76% remain with the business and 60%
have progressed into management roles.
We also launched the How To Series—a set of short virtual
training sessions for Store and Assistant Store Managers
focused on practical topics such as rostering, sales, award
compliance, and inventory. Over 300 training hours were
completed in FY25, with plans to expand the series in FY26.
for the year ended 29 June 2025
13
Annual Report 2025
SUSTAINABILITY REPORT
for the year ended 29 June 2025
14
Accent Group Limited
MODERN SLAVERY AND
ETHICAL SOURCING
Accent Group is committed to operating responsibly and
ensuring no one connected to our business—whether
employees, customers, or supply chain partners—is
subjected to exploitation or modern slavery. We
recognise the potential risks within global supply chains
and have strengthened our supplier engagement
framework to identify and manage these risks effectively.
Our Ethical Sourcing Policy, shared with all suppliers and
brand partners, outlines clear expectations across four
key areas: legal and ethical business conduct, fair labour
standards and human rights (including prohibition of
child labour, forced labour, and discrimination), safe and
healthy working conditions, and proactive environmental
responsibility. Suppliers of Accent-owned brands are
required to sign and return the policy to confirm their
commitment.
Each year, we submit a Modern Slavery Statement to
Australian Border Force, outlining the actions we’ve
taken to address modern slavery risks across our
operations and supply chain. Oversight of this framework
is provided by the Audit and Risk Committee, under
delegation from the Board. Both our Modern Slavery
Statement and Ethical Sourcing Policy are available at
www.accentgr.com.au/investor/investor-information.
Annual Report 2020
2024 Modern Slavery Statement
Accent Group Limited
For the Period 1st July 2023 to 30th June 2024
COMMUNITY
PARTNERSHIPS
At Accent Group, we proudly support charities and
community groups to raise funds and awareness
for important social issues.
In FY25, we launched a range of initiatives across
our brands, demonstrating meaningful impact in
the communities we serve.
INTERNATIONAL WOMEN’S DAY
In March 2025, Accent Group celebrated
International Women’s Day with the theme
Accelerate Action, welcoming Rochelle
Courtenay, Founder and CEO of Share the Dignity,
to our Cremorne office in Melbourne. Rochelle’s
inspiring story encouraged team members to
consider how they can drive change in their
careers and communities. Interstate teams joined
virtually, and the event reaffirmed our ongoing
support for “Share the Dignity’s It’s in the Bag”
campaign in November.
Ethical Sourcing Policy
SUSTAINABILITY REPORT
for the year ended 29 June 2025
15
Annual Report 2025
R U OK? DAY
Accent Group proudly supported R U OK? Day, a
reminder to ask, “Are you OK?” and spark meaningful
conversations with those who may be struggling. This
year, we encouraged both support centre and retail
teams to wear yellow and take time to check in with
colleagues. At our support centres, coffee and cake
sessions created a relaxed space for team members to
step away from their desks, put aside their phones, and
engage in genuine conversations.
WHITE SHIRT DAY
Our support offices once again came together to
celebrate White Shirt Day, raising much-needed funds
for the Ovarian Cancer Research Foundation in support
of their critical work.
VANS BUILD-UP SKATEBOARDING
In FY25, the Vans, Build Up, and Pass~Port crew
continued their mission to bring skateboarding to
remote and regional communities across Australia.
This year’s tour visited Mount Isa and Townsville, where
the program was met with strong local engagement.
Young people participated in hands-on skateboard
building workshops and beginner lessons designed to
build confidence, creativity, and resilience. High-energy
demos from endorsed athletes further inspired local
youth. To create lasting impact, equipment was donated
to local organisations, empowering communities with
the tools and skills to support young skaters beyond
the workshops.
COMMUNITY PARTNERSHIPS –
THE ATHLETE’S FOOT
As a key division of Accent Group, The Athlete’s Foot
supports community wellbeing through long-standing
partnerships and grassroots initiatives. The eight-year
partnership with parkrun in Australia and New Zealand
promotes health, fitness, and social connection through
free, weekly timed runs. Collaborations with local parkrun
events also celebrate store openings and host exclusive
activities, strengthening community ties.
The Athlete’s Foot proudly sponsors the Sam Kerr
Football Academy, a grassroots program for children
aged 3–14 that develops football skills alongside
confidence, resilience, and teamwork. The program
fosters inclusive participation and long-term
engagement in sport.
The Local Schools Program, now over a decade old,
donates $5 to registered schools for every linked
purchase. This initiative has helped schools nationwide
fund equipment, facilities, and extracurricular activities
while encouraging families to support their communities
through everyday shopping.
SUSTAINABILITY REPORT
16
Accent Group Limited
CYBERSECURITY AND DATA PRIVACY
At Accent Group, we prioritise the confidentiality, integrity, and availability of our digital operations and
the privacy of information entrusted to us. Our privacy and security policies ensure fair, transparent use of
personal data and embed data protection as a core business practice. Our dedicated Cybersecurity Team
proactively manages risk and reports regularly to the Accent Group Audit and Risk Committee. Using a
multi-layered, multi-framework approach, we collaborate with industry experts and share global threat
intelligence to stay ahead of emerging risks.
Now in the second year of our security improvement program, we continue to invest in enhancing our
cybersecurity posture. Key initiatives include regular team training, annual PCI DSS assessments, and
independent audits that have highlighted progress in data and system security. Over the past 12 months,
we have strengthened threat detection, expanded privileged access controls, and improved asset
management to reduce vulnerabilities. Our incident response plans are continually refined to minimise the
impact and duration of potential incidents.
Accent Group remains committed to advancing data security measures and continuously evolving our
cyber strategy to address the dynamic threat landscape.
for the year ended 29 June 2025
SUSTAINABILITY REPORT
17
Annual Report 2025
ENVIRONMENT
Accent Group is committed to managing and reducing our environmental footprint. We recognise our corporate
responsibility to divert waste from landfill through recycling and repurposing initiatives. Our environmental framework
focuses on reducing and reusing resources, including sustainable products as part of our ranges, and preparing for
climate-related financial disclosures. These initiatives continue to evolve to strengthen sustainability across our
operations.
Australia imports over 25 million pairs of sports shoes annually, with only around 1% estimated to be recycled. These
shoes can take up to 1,000 years to decompose in landfill. To address this challenge, selected Accent Group banners
have partnered with the Australian Sporting Goods Association (ASGA) to support TreadLightly—a nationwide program
dedicated to recycling and reusing unwanted lifestyle footwear. Collected shoes are processed into crumb material,
which is repurposed into gym mats, playground surfaces, and flooring.
Customers have been able to access convenient shoe recycling drop-off points at various locations such as The Athlete’s
Foot, Hype DC, Platypus and Merrell.
Sustainable Packaging
Accent Group continues to be a member of the Australian Packaging Covenant Organisation (APCO), supporting
national initiatives to reduce environmental impact through recycling, product stewardship, and sustainable packaging
design. As part of our commitment, we prepare and publish an annual APCO Performance Summary and Action Report,
outlining our progress and goals in sustainable packaging.
Recycle
To strengthen sustainability, team members across our business divisions complete interactive recycling training, and
waste separation is monitored through the “Backroom Blitz” program. Operational changes—such as consolidated
deliveries, cardboard reuse, and reduced paper receipts—further reduce waste.
Sustainable Product
Accent Group acknowledges the availability of eco-friendly products within our diverse range, primarily through
offerings from our distribution brand partners and some of our own Accent-owned brands. While these products are
not the primary focus of our sourcing, we recognise their importance to customers seeking environmentally conscious
options. We remain attentive to sustainability trends and continue to support responsible practices throughout our
operations and partnerships to contribute to a more sustainable marketplace.
WE HAVE
COLLECTED
70,121
KGS OF
FOOTWEAR
IN FY25
WE HAVE
RECYCLED
105,296
PAIRS OF SHOES
IN FY25
IN FY25 ACCENT
GROUP HAD
370
ACTIVE
COLLECTION
LOCATIONS
for the year ended 29 June 2025
SUSTAINABILITY REPORT
CLIMATE
Accent Group remains committed to addressing the risks and opportunities associated with climate
change. We recognise the importance of understanding, measuring, and reducing our environmental
impact, and continue to strengthen our response in line with evolving climate-related financial disclosure
frameworks and accounting standards.
Building on previous work with industry experts, we have maintained our measurement of Scope 1 and
Scope 2 greenhouse gas (GHG) emissions. This detailed inventory of our direct emissions continues
to inform our strategy, with electricity usage across our retail stores, offices, and distribution centres
remaining the primary source of our direct emissions.
During the year, we used a reporting platform to improve the accuracy and management of our Scope
2 emissions data. This platform has enhanced our ability to track emissions performance and supports
greater transparency and accountability.
In preparation for future reporting requirements, we have also commenced planning to identify and assess
our Scope 3 emissions, which include indirect impacts across our value chain. This work involves evaluating
available data sources, engaging with suppliers, and building internal capability to ensure readiness for
more comprehensive emissions reporting.
Oversight of our environmental initiatives is led by the Group Chief Financial & Operating Officer, who
reports to the Accent Group Audit and Risk Committee and ultimately the Accent Board. This governance
structure ensures climate-related matters remain an integral part of our strategic and operational
decision-making.
for the year ended 29 June 2025
18
Accent Group Limited
19
Annual Report 2025
for the year ended 29 June 2025
DIRECTORS' REPORT
DIRECTORS' REPORT
FY25 DIRECTORS’ REPORT
The Directors present their report, together with the financial statements of the consolidated entity (the Consolidated
Entity or Group) consisting of Accent Group Limited (the Company or Accent Group) and its controlled entities for the
year ended 29 June 2025.
1.
DIRECTORS
The following persons were Directors of Accent Group during the whole of the financial year and up to the date of this
report, unless otherwise stated:
–
David Gordon Chairman
–
Daniel Agostinelli Group Chief Executive Officer
–
Michael Hapgood
–
Donna Player
–
Anne Loveridge AM
–
Lawrence Myers
–
David Forsey (appointed 21 November 2024)
–
Brett Blundy (resigned 28 August 2024)
–
Timothy Dodd alternate Director for Brett Blundy (resigned 28 August 2024)
2.
PRINCIPAL ACTIVITIES
Accent Group is a leading digitally integrated consumer business in the retail and distribution sectors of branded
performance and lifestyle footwear, apparel and accessories with over 890 stores across 18 different retail banners and
exclusive distribution rights for 12 international brands across Australia and New Zealand.
The Group’s banners and brands include Skechers, The Athlete’s Foot (TAF), Platypus Shoes, Hype DC, Merrell, Vans,
Dr. Martens, Saucony, Timberland, HOKA, Hershel, Superga, Subtype, Stylerunner, Nude Lucy, Glue Store and UGG,
with Sports Direct, Dickies and Lacoste commencing in FY26.
3.
DIVIDENDS
Dividends paid or declared by the Company during, and since the end of, the financial year are set out in Note 25 to the
financial statements and summarised below:
FY25 Final
FY25 Interim
FY24 Final
FY24 Interim
Cents per ordinary share
1.50
5.50
4.50
8.50
Total amount ($’000)
9,018
31,130
25,470
47,859
Payment date
25 September 2025
20 March 2025
26 September 2024
21 March 2024
The total dividend for the financial year ended 29 June 2025 of 7.00 cents per share is a decrease of 46.2% on the
previous year.
4.
OPERATING AND FINANCIAL REVIEW
The Operating and Financial Review of the Group for the financial year ended 29 June 2025 is provided in the Chairman
and Chief Executive Officer’s Report on page 3 and forms part of this Directors’ Report.
5.
MATERIAL BUSINESS RISKS
The Group’s risk management framework enables it to continuously, systematically and actively monitor and manage
the potential risks which may adversely impact the operational and financial performance of its businesses, which in turn
may affect the outcome of an investment in the Group. There is no guarantee that the stated objectives of the Group will
be achieved. A variety of factors, both Group specific and of a general nature, may impact upon the Group’s activities
and results, including general economic and business conditions, inflation, interest and exchange rates, consumer
confidence, and government policies.
The Group considers the following to be business risks that are likely to have a material effect on its operational and
financial performance. An overview (and not exhaustive list) of mitigation actions taken by the Group is also set out.
20
Accent Group Limited
for the year ended 29 June 2025
DIRECTORS' REPORT
Type and description of risk
Mitigating Actions
Competition
The markets in which the Group operates remain highly
competitive, and any increased competition from new
and existing competitors may lead to price deflation and
a decline in sales and profitability, in particular:
–
Entrance of new international competitors
–
Aggressive discounting by local competitors
–
Growth in international online sites providing shipping
to Australia and New Zealand
–
DTC distribution strategies of global brands
–
Global luxury brands expanding in the lifestyle
footwear category
–
Competition from existing and new apparel brands and
retailers in the youth, lifestyle and athleisure segments
–
Implementing a world class omnichannel retail strategy
to ensure seamless customer experience
–
Opening new stores or launching new brands to increase
market share in Australia and New Zealand
–
Opening new and larger, or upgrading existing, stores in
locales where there is a heavy competitor presence
–
Development and execution of new brand formats and
product offerings in the performance, youth and lifestyle
footwear and apparel markets
–
Continuing to enhance online digital capability and sales
penetration
–
Monitoring international markets to identify
opportunities for growth
–
Developing a deeper understanding of our customers,
including through application of technological
development, loyalty, CRM, and face-to-face
engagement in-store
Changes in Consumer Behaviour
The Group is exposed to both the upside and downside of
cycles in consumer spending and demands, given that the
products offered by the Group are discretionary in nature.
Accordingly, customers' preferences, perception of
brands, and demographics are all considered risks, in
particular:
–
A reduction in consumer spending and demand may
lead to a decline in the Group’s sales and profitability
–
Trends in consumers shifting to online shopping drives
a prolonged decline in stores’ like-for-like sales growth
–
Brand or product under-performance due to a
misalignment with evolving consumer preferences,
fashion trends or lifestyle changes
–
Managing a diverse portfolio of brands, with appeal
to broader consumer demographic
–
Driving store rental reductions and landlord
contributions at renewal
–
Continued investment in store fit-out with each new
store and refurbished stores including new experiential
elements
–
Continued investment in the digital customer
experience and loyalty programs
–
Continuing to optimise the incremental digital costs
for marketing and distribution
–
Closely monitoring and responding quickly to changes
in the economic environment, consumer demand and
new products
Health and Safety
The Group is committed to the health and safety of its
team members, customers and contractors and places a
strong emphasis on the implementation of work health
and safety standards. However, risks remain possible, in
particular:
–
Injury to a customer or a team member in work
locations
–
Death of a customer or a team member in work
locations
–
A natural disaster event impacting on the safety of
team members or customers
–
External events involving a team member or a member
of the public (e.g. self-harm, public situations) causing
trauma, distress and psychological harm
–
Incidents such as bullying or harassment of any nature
leading to mental health injuries
–
Established and regularly updating and implementing
a health and safety management system including
resources, training and procedures on physical health,
mental health, customer aggression and Respect at
Work obligations
–
Investigating every incident to mitigate against
reoccurrence
–
Implementing learning initiatives and improvements to
create safer work locations (including against customer
aggression)
–
Creating training modules to ensure that all team
members are inducted in safe work practices
–
Developing an auditing program to train leaders to
regularly identify safety risks
–
Establishing the Safety Steering Group which meets
regularly to discuss and review incidents
–
Engaging with government agencies to ensure legal
compliance
–
Engaging third party providers to support team
members with issues that may impact their wellbeing
–
Provide First Aid/CPR training to nominated
representatives in office locations, and Mental Health
First Aid training to State and National Managers
21
Annual Report 2025
for the year ended 29 June 2025
DIRECTORS' REPORT
Type and description of risk
Mitigating Actions
Cybersecurity and Information Technology
While an increased reliance on information technology
systems maximises the efficiency of the Group’s business
operations, any sustained and unplanned downtime due to
cybersecurity attacks, system failures, network disruptions
and other malicious or non-malicious incidents could have
a material adverse impact on the Group’s reputation, and
its operating and financial performance, in particular:
–
Internal/external unauthorised access to customer data
–
External attack on websites
–
Internal/external unauthorised access to sensitive
commercial data
–
Fraudulent email phishing attacks resulting in
compromised infrastructure or systems
–
Corruption of Enterprise Resource Management
software (ERP/ERM)
–
Third party actions resulting in technology failure or
malicious attack impacting ability to trade (e.g. POS
systems)
–
Documented disaster recovery processes (including
offsite information technology back-up infrastructure)
–
Implemented improved user access and profiling
–
Increasing the frequency of security assessments,
penetration and vulnerability testing using external
expert advisers
–
Implemented higher level password security and change
protocols and multifactor authentication
–
Implementing appropriate programs and tools to
identify and formalise the remediation of vulnerabilities
–
Reviewing payment card industry compliance
–
Exploring and, where appropriate, implementing
security tools based on artificial intelligence
Distributed Brands and Key Supplier Relationships
The Group enjoys strong partnerships with all major
suppliers, and its regional exclusivity with numerous sought-
after brands is a key distinguishing feature of its product
offering. Failing to maintain good working relationships and
poor execution may lead to the following risks:
–
Loss of a key distributed brand due to poor
management, lack of growth or brand preference to
manage the territory themselves.
–
Loss of a key global third party brand due to pressure
from competitors
–
Substantive change in distribution strategy of a key
supplier resulting in a substantial product ranging change
–
Implemented a thorough, methodical and effective
renewal program for distributed brands
–
C-suite engagement with distributed brand principals
over regular periods
–
Driving the mix and growth of distributed brands
–
Rolling out concept stores for distributed brands
–
Opening new store formats to increase category reach,
expanding the Group’s relevance as a distributor or
brand partner
Sustainability and Social Responsibility
The sustainability of the Group’s business is impacted by a
number of environmental and social factors. Any actual or
perceived failure to adequately address sustainability related
issues may have an adverse effect on the Group’s reputation,
and operational and financial performance, in particular:
–
Identifying issues in its supply chain (including modern
slavery practices)
–
Sourcing sustainable materials and packaging
–
Implementing product compliant systems to improve
product safety
–
Promoting gender equality
–
Responding inadequately to increasing demand
from consumers regarding traceability of products
and clearer and more meaningful labelling may lead
to reputational damage and potentially immediate
adverse political or customer actions
–
Establishing an Environmental, Social and Governance
(‘ESG’) framework
–
General purview of ESG under Group Chief Financial
and Operating Officer, with individual accountability for
implementation of initiatives sitting within each business,
with ultimate oversight by the Audit and Risk Committee
–
Reporting on the Group’s progress of published targets
in the Sustainability Report annually with regular
monitoring throughout the year
–
Reporting annually on the Group’s Modern Slavery
Statement with regular monitoring throughout the year
–
Established a responsible sourcing framework under
which the Ethical Sourcing Policy was created, and is
distributed to relevant parties in the Group’s vertical
products supply chain
–
Reviewing the recommendations of the Financial
Stability Board’s Task Force on Climate-related Financial
Disclosures and local regulatory developments and, if
appropriate, provide an analysis of and make disclosures
aligned with, the recommendations
–
Commitment for gender equality in leadership roles
as published in the Group’s Sustainability Report and
Corporate Governance Statement annually
22
Accent Group Limited
for the year ended 29 June 2025
DIRECTORS' REPORT
Type and description of risk
Mitigating Actions
Legal, Regulatory and Compliance
The Group is required to maintain compliance with all
applicable laws and regulations, including those relating to
consumer protection, product quality, ethical sourcing and
corporate governance. Failure to comply with these laws
and regulations could result in high legal costs, adverse
monetary judgments, regulatory enforcement action and
other claims which could have a material adverse impact
on the Group’s reputation, and operational and financial
performance, in particular:
–
Aggressive or poorly controlled tax risk management
leading to misstatements of tax payable
–
Lack of focus on supply chain management, resulting
in an inability to meet Modern Slavery regulations
requirements
–
Poor management of PCI compliance, resulting in
monetary fines and regulatory breaches
–
Poor understanding of key pieces of legislation
impacting on the Group’s business leading to
regulatory breaches, significant monetary fines and/or
litigious action
–
Poor understanding of Australian consumer law or
customer Data use/Privacy requirements could result
in breaches of the relevant legislation
–
Establishing policies, procedures and compliance
systems
–
Established a Group-wide Code of Conduct including
periodic reviews and attestations of compliance from the
senior management team
–
Established the Whistleblower Policy and dedicated
Whistleblower Protection Officer
–
Dedicated in‑house legal team
–
Regular consultation with professional advisers on key
areas of compliance risk
–
Actively monitoring changes to regulations and laws
–
Monthly financial and disclosures obligation reporting
–
Upweighted focus on tax risk compliance, including
the regular, systematic review of the effectiveness and
currency of the Group’s Tax Risk Management Policy
–
Monitoring developments with the privacy laws and
reviewing our policies to ensure compliance
6.
SUSTAINABILITY
A detailed account of our approach to business sustainability, covering people and safety, ethical sourcing, community and
the environment is contained on pages 10-18 of this Annual Report.
7.
INFORMATION ON DIRECTORS
Name
Particulars
David Gordon
Non-Executive Chairman
David has over 30 years’ experience as a Director of both public and private companies
and working in corporate advisory roles to Australian and international organisations.
He brings extensive knowledge of mergers and acquisitions, as well as capital raisings,
IPOs and joint ventures.
David also has a proven track record in guiding businesses to harness their digital asset
capability to successfully explore and grow new markets.
David is a Non-Executive Director of nib Holdings Limited (since May 2020) and was
appointed Chair in July 2021. He is also a director of its health fund subsidiary, nib Health
Funds Limited. He is also the Chairman of Homecare Holdings Pty Ltd, Genesis Capital
Manager 1 Pty Ltd and Genesis Capital Manager 2 Pty Ltd.
David has been a Non-Executive Director of Accent Group since October 2006 and was
appointed Non-Executive Chairman in November 2017.
David is also a member of the Audit and Risk Committee and People and Remuneration
Committee.
As previously announced, David will retire from the Board of Directors at the conclusion
of the 2025 AGM to be held in November 2025.
Daniel Agostinelli
Chief Executive Officer
Daniel oversees the day-to-day operations of Accent Group. He has over 30 years of retail
experience and was formerly the CEO of Sanity Music and part owner of the Ghetto Shoes
sneaker business. Daniel has been with Accent Group since 2006 and CEO of Accent
Group since March 2015.
23
Annual Report 2025
for the year ended 29 June 2025
DIRECTORS' REPORT
Name
Particulars
Michael Hapgood
Co-Founder and
Non-Executive Director
A founding Director and shareholder of Accent Group, Michael has extensive knowledge
of the processes required to effectively launch, source and manage global brands within the
Australasian market.
From Accent Group’s inception, Michael has been intimately involved in the development
of all major strategic initiatives for the business initially from 1988 as marketing director
before becoming CEO in 1998 until the sale to RCG Group in May 2015. Michael then
became Accent Group’s Chairman until August 2016 when all ongoing executive roles
were relinquished.
He continues as a Non-Executive Director and shareholder of Accent Group.
Donna Player
Non-Executive Director
Donna has over 35 years’ experience in retail including senior executive positions in
merchandising, planning and marketing with Big W and David Jones. Donna is currently
a Non-Executive Director of Baby Bunting Group Limited (since January 2017) and is the
Merchandise Director of Camilla Australia. Donna has a proven track record in developing
and delivering retail strategy and business transformation.
Donna was appointed as a Non-Executive Director in November 2017 and is a member of
the People and Remuneration Committee.
Anne Loveridge AM
Non-Executive Director
Anne has more than 30 years’ experience in business as a partner at PwC and as a Non-
Executive Director of ASX listed companies. Anne is a qualified accountant (FCA). During
her career as a senior executive and partner, Anne gained deep experience in business
performance, client experience, stakeholder engagement, governance, and people and
culture. This included a particular focus on business growth and change management,
leadership development and succession, performance and reward frameworks and
promoting increased diversity. Anne is also a Non-Executive Director of ASX listed
companies, nib Holdings Ltd (since February 2025), Platinum Asset Management (since
September 2016), and ASX Ltd (since July 2025). She also holds roles as a Non-Executive
Director of Destination NSW and HSBC Bank Australia Ltd. She was formerly a Non-
Executive Director of National Australia Bank (December 2015-December 2024).
Anne was appointed to the Board at Accent Group as a Non-Executive Director and Chair
of the Audit and Risk Committee on 17 November 2023.
Anne receives an amount from a retirement scheme in relation to her former role as a
partner at PwC. The amount of the payment is fixed (subject to CPI) and not related to the
financial performance of PwC. The Board is satisfied that this matter does not affect her
independence as Non-Executive Director and does not constitute a conflict of interest.
Lawrence Myers
Non-Executive Director
Lawrence has deep consumer retail and advisory board experience, working with notable
Australian retail brands such as Bec + Bridge and Industrie Clothing, and is the Deputy Chair
of Breville Group Limited. With more than 20 years’ experience as a practising Chartered
Accountant, Lawrence is also the Managing Director and Founder of high-end accounting
firm MBP Advisory Pty Limited, a Non-Executive Director of Regal Asian Investments
Limited (since September 2019) and VGI Partners Global Investments Limited (since July
2017). He was recently appointed as the Chief Executive Officer of Consolidated Press
Holdings Pty Limited.
Lawrence was appointed to the Board of Accent Group as a Non-Executive Director and
member of the People and Remuneration Committee on 17 November 2023, and as Chair
of the People and Remuneration Committee on 1 July 2024.
24
Accent Group Limited
for the year ended 29 June 2025
DIRECTORS' REPORT
Name
Particulars
David Forsey
Non-Executive Director
David joined Frasers Group in 1984, dedicating 32 years to the business as he helped grow
it from one store to a diverse global sporting goods retailer. David was named Managing
Director of Sports Direct International until 2007, when he was appointed as Chief
Executive Officer. In 2017, David transitioned into a consulting role, lending his expertise
to numerous Retail and Brand businesses. In 2020, he became Managing Director at
Revolution Beauty. David now serves as General Manager APMEA for Frasers Group, with
a focus on the Group’s international expansion through organic growth, M&A, joint ventures,
and franchise opportunities.
David was appointed to the Board of Accent Group as a Non-Executive Director on
21 November 2024.
Brett Blundy
Non-Executive Director
Brett resigned from the Board in August 2024.
Brett was re-appointed as a Non-Executive Director of Accent Group in April 2021 and was
a member of the Audit and Risk Committee.
8.
COMPANY SECRETARIES
The following persons were Company Secretaries of Accent Group during the whole of the financial year and up to the date
of this report:
Name
Particulars
Matthew Durbin
Matthew is Group Chief Financial and Operations Officer, having had his role expanded
during 2021 to include oversight of and responsibility for shared services of the Group.
He is also a joint Company Secretary. Matthew is a qualified accountant (FCPA) with
30 years’ experience in retail. Prior to joining Accent Group, he was the CFO and
COO of The PAS Group and has also held executive roles with David Jones in strategy,
financial services and merchandise planning.
Matthew joined Accent Group in November 2017 and was appointed as the joint
Company Secretary in January 2018.
Nicole Nuttall
Nicole is the Group General Counsel and joint Company Secretary with over 20 years
experience in corporate governance, corporate advisory, commercial, consumer and
competition law. Prior to joining Accent Group, Nicole held various senior positions with
The Goodyear Tire & Rubber Company.
Nicole joined Accent Group in September 2024 and was appointed as the joint
Company Secretary in October 2024.
25
Annual Report 2025
for the year ended 29 June 2025
DIRECTORS' REPORT
9.
BOARD COMPOSITION AND INDEPENDENCE
The Board recognises the importance of having Directors who possess the combined skills, expertise and experience to
facilitate constructive decision making and follow good governance processes and procedures.
The table below outlines the mix of skills and experience considered by the Board to be important for its Directors to
collectively possess. The Board considers that collectively it has an effective blend of these skills to enable it to discharge
its duties and effectively govern the business and add value in driving the Group’s strategy.
Skill
Description
Strategy and planning
Ability to think strategically and identify and critically assess opportunities and threats
and develop effective strategies in the context of changing market conditions.
Operations
A broad range of commercial and business experience in business systems, practices,
improvements, risk and compliance, sales, technology and human resources.
Capital markets and M&A
Expertise in considering and implementing efficient capital management including
alternative capital sources and distributions, yields and markets.
Experience in all aspects of the negotiation, structuring, risk management and
assessment of both acquisitions and divestments.
Finance and tax
The ability to analyse financial statements and reporting, critically assess the financial
performance of the Group, contribute to budget planning and efficient use of capital
and resources, and demonstrable ability to assess, understand and manage tax risks
and obligations.
Sales and marketing
Clear understanding of retail selling and marketing, developing and implementing
sales and marketing teams and strategies, recruiting, running and incentivising sales
teams, and setting sales budgets and targets.
Retail experience
(physical and digital)
Experience and broad understanding of the physical and online retail footwear
and apparel industry, including market drivers, risks and trends including policies,
competitors, end users, regulatory policy and framework.
People and performance
Appreciation for the best practices in HR planning and management with familiarity
in employment legislation and labour relations, recruitment, compensation,
performance reviews and conflict management.
Technology, data and privacy
Expertise in the area of technology that the Group should be aware of and utilising,
including keeping abreast of new and emerging technology.
Governance, compliance and
risk management
Ability to identify key risks to the group in a wide range of areas including legal and
regulatory compliance and monitor risk and compliance management frameworks and
systems.
Knowledge and experience in best practice ASX and Corporations Act, governance
structures, policies and processes.
Director independence
Daniel Agostinelli is a full-time executive and therefore not considered independent.
Of the remaining seven Non-Executive Directors, four are considered by the Board to be independent – David Gordon,
Donna Player, Anne Loveridge AM and Lawrence Myers.
Notwithstanding the tenure of Mr Gordon, the Board considers him to be independent and the Company is well
served by Mr Gordon’s deep understanding of Accent Group and its business as a result of his longer tenure. Given
Mr Gordon’s tenure of over 10 years, the Board regularly assesses whether he has become too close to management
to be considered independent. The Board regularly conducts such an assessment, and has recently reconfirmed
Mr Gordon’s independence, on the basis that he is non-executive, not a substantial shareholder, and conducts himself
at arm’s length in his engagement with the Company. He brings his considerable skills and knowledge to bear on matters
before the Board. The Board considers that Mr Gordon’s approach to matters of the Board is always independent in both
appearance and in fact. As previously announced, Mr Gordon will retire from the Board at the conclusion of the 2025
AGM which will be held in November 2025.
Mr Hapgood is related to one of the senior executives of the Company and is not considered independent. However, as a
Non-Executive Director, Mr Hapgood is not involved in the day-to-day operating decisions of the business and therefore
able to bring clarity and considerable skills and knowledge to bear on matters before the Board. Due to his familial links
with the executive, Mr Hapgood does not participate in any Board matters relating to management remuneration other
than the CEO.
26
Accent Group Limited
for the year ended 29 June 2025
DIRECTORS' REPORT
David Forsey is the Nominee Director appointed by Frasers Group plc, a substantial shareholder, and is therefore not
considered to be independent. However, as a Non-Executive Director, he is not involved in the day-to-day operating
decisions of the business and therefore able to bring clarity and considerable skills and knowledge to bear on matters
before the Board. The Board considers that Mr Forsey draws on his considerable international retail experience to act in
the best interests of the Company and its shareholders.
Prior to his resignation, Mr Blundy was a substantial shareholder and was therefore not considered to be independent.
Similarly, Mr Blundy’s Alternate Director is not considered to be independent.
10. MEETINGS OF DIRECTORS
The following table sets out the number of Directors' meetings (committee meetings) held during the year ended
29 June 2025 and the number of meetings attended by the members of the Board or the relevant committee. During
the financial year, twelve Board Meetings, four Audit and Risk Committee meetings and four People and Remuneration
Committee meetings, were held.
Directors have a standing invitation to attend meetings of Board committees of which they are not members. All Directors
receive copies of the agendas, papers and minutes of each Board committee meeting (appropriately redacted, where
necessary).
Full Board
Audit and Risk
Committee
People and
Remuneration
Committee
Held
Attended
Held
Attended
Held
Attended
David Gordon
12
12
4
4
4
4
Daniel Agostinelli
12
12
4
4
4
4
Michael Hapgood
12
12
–
–
–
–
Donna Player
12
12
–
–
4
4
Anne Loveridge AM
12
11
4
4
4
4
Lawrence Myers
12
12
4
4
4
4
David Forsey1
7
4
–
–
–
–
Brett Blundy2
2
1
–
–
–
–
Timothy Dodd3
2
–
1
1
–
–
1
Appointed on 21 November 2024. Due to a potential conflict, Mr Forsey was asked not to attend 3 meetings.
2 Resigned on 28 August 2024
3 Resigned on 28 August 2024
Held: represents the number of meetings held during the time the Director held office.
Nominee Committee meeting was not held in FY25.
11.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In April 2025, the Group announced a long-term strategic transaction with Frasers Group plc that will see the Group
launch and operate the Sports Direct business in Australia and New Zealand for an initial term of 25 years. The
transaction also resulted in Frasers Group taking a strategic shareholding in the Group to become its largest shareholder.
12. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
See Note 25 for dividend declared.
Apart from the matters described above, no other matters or circumstances have arisen since 29 June 2025 that have
significantly affected, or may significantly affect the Group's operations, the results of those operations, or the Group's
state of affairs in future financial years.
13. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
Expected future developments (except for those considered to be commercially sensitive) are outlined in the Chairman
and Chief Executive Officer’s Report, Section 5 - Material business risks of this report and Section 12 - Matters
subsequent to the end of the financial year of this report.
14. ENVIRONMENTAL REGULATION
The operations of the Group are not subject to any particular and significant environmental regulation and did not incur
any significant liabilities under any environmental legislation during the financial year.
27
Annual Report 2025
for the year ended 29 June 2025
DIRECTORS' REPORT
15. INDEMNITY AND INSURANCE OF OFFICERS
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity as
a director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives
of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
16. PROCEEDINGS ON BEHALF OF THE COMPANY
No proceedings have been brought or intervened in on behalf of the Company with the leave of the court under section
237 of the Corporations Act 2001. No person has applied to the court under section 237 of the Corporations Act 2001
for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the Company is
a party.
17.
AUDITOR
The appointment of PricewaterhouseCoopers by the Board as the new auditor was approved by the shareholders of the
Company on 17 November 2023. It continues in office in accordance with section 327 of the Corporations Act 2001.
18. INDEMNITY AND INSURANCE OF AUDITOR
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor
of the Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the
Company or any related entity.
19.
NON-AUDIT SERVICES
As set out in Note 29 to the financial statements, the auditor did not provide any non-audit services to the Company
during the financial year.
20. ROUNDING OF AMOUNTS
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
21. AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set
out on page 45.
28
Accent Group Limited
29 June 2025
REMUNERATION REPORT
REMUNERATION REPORT
FY25 REMUNERATION REPORT
Letter from the Chair of the People and Remuneration Committee
Dear Shareholders,
On behalf of Accent Group, I present the FY25 Remuneration Report outlining the Group’s remuneration strategy and
framework, and decisions taken by the Board in relation to the remuneration of key management personnel (KMP).
This report sets out how the Board has approached remuneration in the context of the significant business growth achieved
over the last five years. Notwithstanding this, we acknowledge that FY25 was a challenging year, and the financial results of
the Company were not what we hoped could be delivered. It is in this context that we present the remuneration outcomes,
which reflect the challenging consumer environment, and the financial results achieved in FY25.
Our Business Strategy
Accent Group continued to invest in the strategic priorities of the business, both for future growth and to continue the
journey as a regional leader in the retailing and distribution of performance and lifestyle footwear and apparel.
The management team continued to drive store network growth and opened 54 new stores during the financial year.
The Group operates over 890 stores across 18 different retail banners with exclusive distribution rights for 12 international
brands throughout Australia and New Zealand.
In a year characterised by a more challenging consumer environment and inflationary cost pressures, the Company has
remained focused on growth and return on investment for shareholders. Trading highlights for the year included the strong
performance of The Athlete’s Foot (TAF), HOKA, Saucony, Merrell, Hype DC and Nude Lucy. The Group also entered into
distribution agreements for Dickies and Lacoste, extended the distribution agreements for Merrell and Timberland for a
further term and entered a strategic transaction with Frasers Group plc to launch and operate the Sports Direct business
in Australia and New Zealand. The Company remains focused on improving shareholder returns. Aligned to this objective,
it continues to review and evolve its brand portfolio including divesting The Trybe, closing 14 underperforming Glue stores
and discontinuing the distribution of CAT and Superga which is due to end on 31 December 2025. This continued portfolio
review allows focus to be applied to the highest performing and growth businesses.
Our Performance
In FY25 we achieved Earnings Before Interest and Tax (EBIT) of $110.2m, down 0.2% on FY24 (FY24: $110.4m; FY23:
$138.8m EBIT).
The Board considers that the overall performance of Accent Group taken over the past 10 years has been commendable,
delivering shareholders a 10-year compounding total shareholder return of around 10% to 29 June 2025.
Continuous Improvement in Remuneration Practices
The Company continues to respond to feedback received from Shareholders and their advisors in relation to the
Company’s remuneration practices.
The Board maintains its commitment to continue to improve transparency in the Remuneration Report in relation to
remuneration outcomes. For the FY25 performance period, the primary financial metric for the Short-Term Incentive
(STI) program remained unchanged from FY24 and is reported EBIT (no underlying or other discretionary adjustments
have been applied).
In relation to the Company’s Long-Term Incentive (LTI) program, the Board still considers a single metric program, using
Adjusted Diluted Earnings Per Share (ADEPS) as the measure, to be the best approach for the delivery of a scheme that
is both easy to understand and that also drives a real incentive during each year of the plan.
29
Annual Report 2025
29 June 2025
REMUNERATION REPORT
FY25 Remuneration Outcomes
The financial performance of the Company in FY25 has resulted in the following remuneration outcomes. It is important
to note that all financial outcomes with respect to the FY25 STI and LTI programs have been assessed, including the impact
of charges relating to the exit of underperforming stores in the Glue Store business, and that no adjustments or discretion
have been applied to these assessments.
–
With respect to FY25, the financial performance hurdles required for the payment of 70% of the FY25 short term
incentive were not achieved. A partial number of the strategic measures required for the payment of 30% of the
short-term incentive were achieved. On this basis, the Board determined that STI would be paid in line with strategic
measures achieved, with the CEO and CFOO each achieving 24.7% of the maximum STI payable.
–
The Board received shareholder approval in its 2024 Annual General Meeting to exercise discretion in relation to
Tranche 6 (FY22-FY25) and Tranche 7 (FY23-FY26) LTI grant of the Performance Rights Plan. The approval meant
that:
–
In respect of Tranche 6, to reset the base off which the performance conditions are assessed to reduce the sliding
scale annual compounding dilated EPS growth target rates to 8% as threshold, 10% as target and 15% as stretch
target.
–
In respect of Tranche 7, to reset the base off which the performance conditions are assessed to reduce the sliding
scale annual compounding dilated EPS growth target rates to 8% as threshold, 10% as target and 15% as stretch
target.
–
In respect of Tranche 6 (FY22-FY25) of the Company’s Performance Rights Plan (issued in November 2021),
the required compounding growth per annum in ADEPS for the period FY22-FY25 was not met and as such, no
performance rights will vest from Tranche 6.
In conclusion, I am pleased to present the Company’s FY25 Remuneration Report which includes significant additional
disclosure compared to prior years.
Yours faithfully,
Lawrence Myers
Chairman of the People and Remuneration Committee
22 August 2025
30
Accent Group Limited
29 June 2025
REMUNERATION REPORT
FY25 REMUNERATION REPORT
1.
REMUNERATION OVERVIEW
1.1.
Details of Management Personnel (KMP)
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entire entity, directly or indirectly, including all Directors.
Executive Director
Daniel Agostinelli
Group Chief Executive Officer
Full year
Senior Executives
Matthew Durbin
Group Chief Financial and Operating Officer
Full year
Non-Executive Directors
David Gordon
Chairman
Full year
Michael Hapgood
Director
Full year
Anne Loveridge AM
Director
Full year
Lawrence Myers
Director
Full year
Donna Player
Director
Full year
David Forsey
Director
Appointed 21 November 2024
Brett Blundy
Director
Resigned 28 August 2024
Timothy Dodd
Alternate Director
Resigned 28 August 2024
1.2. People and Remuneration Committee (PARCO) and Nomination Committee
The Board has established a People and Remuneration Committee (PARCO) which operates under the delegated
authority of the Board of Directors. The following Non-Executive Directors are members of PARCO:
Mr L Myers
Independent Non-Executive Committee Chair to 29 June 2025
Ms D Player
Independent Non-Executive Director
Mr D Gordon
Independent Non-Executive Director
Ms A Loveridge AM
Independent Non-Executive Director
PARCO is authorised by the Board to obtain external professional advice, and to secure the attendance of advisers with
relevant experience and expertise when it considers this necessary.
The Group’s remuneration strategy is designed and implemented on behalf of the Board by PARCO. PARCO then makes
recommendations to the Board on matters relating to remuneration for the entities within the Group. PARCO considers
recruitment, retention and termination policies and procedures, non-executive Directors’ remuneration, executive
Directors and KMP remuneration and incentive policy and awards, and contractual arrangements with KMP.
More detail on the Company’s remuneration policy is provided in the Corporate Governance Statement.
The Nomination Committee comprises all of the Non-Executive Directors of the Company.
The Nomination Committee is charged with overseeing, monitoring and evaluating Board performance, ensuring
appropriate induction and professional development programs for directors, and succession planning. In addition
to making recommendations to the Board on the above, it is also responsible for recommending to the Board (once
identified) the best-qualified candidates for the Board of Directors.
1.3. Use of Remuneration Consultants
Where PARCO determines it may benefit from external advice, it may engage directly with a remuneration consultant,
who reports directly to the Committee. In selecting a suitable consultant, the Committee considers potential conflicts
of interest and requires independence from the Group’s KMP as part of their terms of engagement.
31
Annual Report 2025
29 June 2025
REMUNERATION REPORT
1.4. Board Policies for Determining Remuneration
The Board understands that the performance of the Group is driven through the quality and motivation of its people,
including the CEO and executive team and the approximately 8,600 team members of the Group across Australia
and New Zealand. The Group’s remuneration strategy is designed to attract, motivate and retain high quality and high
performing employees, while ensuring that the interests of employees are in line with the interests of shareholders.
Our strategy is guided by our vision to be the leader in the performance and lifestyle footwear and apparel markets
across Australia and New Zealand, by delivering world-class customer experiences, and harnessing the power of our
people, brands and products. The Board aims to achieve this by setting market competitive remuneration packages
that consist of a mix of fixed remuneration, short-term incentives to reward annual performance and long-term
incentives that align to long-term financial performance and long-term shareholder value creation.
Our remuneration framework is guided by the key principles of alignment with:
–
Delivery of long-term returns to shareholders through the delivery of sustainable sales and profit growth across
the business
–
Delivery of sustainable growth in dividends flowing from the strong cash flows from its defensible and desirable
business
–
Maintaining a strong, conservatively geared balance sheet
–
Adherence to the Group’s Code of Conduct and Company values
–
Encouraging a culture of equality and diversity
The Group’s remuneration reviews take place within three months of the end of each financial year. Prior to these
reviews, the CEO makes recommendations to PARCO regarding the remuneration of each of his direct reports and the
overall remuneration framework for all employees. PARCO meets to consider those recommendations and discusses
and recommends the remuneration of the CEO to the Board.
2.
REMUNERATION COMPONENTS
The key features of the Executive KMP remuneration structure are outlined below:
Type of remuneration
Total Executive Remuneration
Fixed
At risk
Fixed remuneration
Short-term incentive
Long-term incentive
How is it set
Fixed remuneration is
set with reference to
market competitive
rates in comparable
ASX listed companies
for similar positions,
adjusted to account for
the experience, ability
and productivity of the
individual employee.
The Group’s STI plan
is tied directly to the
achievement of profit
growth in the case of
KMP, this is based on the
Group as a whole
Refer to section 2.3 for
further details.
The Company
has established a
Performance Rights
Plan. There have been
a number of tranches
of performance rights
issued under the
plan, each requiring
a target achievement
of 10% (or greater)
compounding earnings
per share growth
over the relevant
performance period.
Refer to section 2.4 for
further details.
How is it delivered
–
Base salary
–
Superannuation
–
Other benefits (e.g.
motor vehicle)
–
100% cash
–
Performance rights
that vest at the end
of the performance
period if vesting
conditions are met
–
Escrow periods may
also apply
32
Accent Group Limited
29 June 2025
REMUNERATION REPORT
Type of remuneration
Total Executive Remuneration
Fixed
At risk
Fixed remuneration
Short-term incentive
Long-term incentive
What is the objective
–
Attract and retain key
talent
–
Be competitive
–
Support workplace
diversity and equality
–
Drive annual
profit growth and
shareholder returns
–
Reward value
creation over a one-
year period whilst
supporting the long-
term strategy
–
Incentivise desired
behaviours in line
with the Group’s risk
appetite
–
Support delivery
of the business
strategy and growth
objectives
–
Incentivise long-term
value creation and
shareholder returns
–
Drive alignment
of employee and
shareholder interests
2.1. Link between financial performance, shareholder wealth and remuneration
The Group’s executive remuneration is directly related to the performance of the Group, through the linking of
incentives to certain financial measures as detailed previously and shown below.
The financial performance of the Group and shareholder value creation over the last 5 years is also summarised in the
table below.
FY21
FY22*
FY23
FY24
FY25
Growth YoY
CAGR
Last
5 years
Revenues ($'m) (inc.
Franchisees and Other Income)
993.8
1,130.6
1,422.1
1,456.2
1,478.0
1.5%
10.4 %
EBITDA ($'m)
242.0
213.6
298.2
293.7
288.8
(1.7%)
4.5%
EBIT ($'m)
124.9
62.3
138.8
110.4
110.2
(0.2%)
(3.1%)
Net profit attributable to the
owners of the Company ($'m)
76.9
31.5
88.7
59.5
57.7
(3.0%)
(6.9%)
EPS** (cents)
14.21
5.81
16.16
10.61
10.12
(4.6%)
(8.1%)
Shareholder value created:
Market capitalisation ($'m)***
1,496.0
661.1
928.1
1,089.5
835.6
(23.3%)
(13.5%)
Enterprise value($'m)***
1,563.0
780.4
1,047.7
1,211.7
935.7
(22.8%)
(12.0%)
Movement in enterprise value
during the financial year ($'m)
734.8
(782.7)
267.3
164.0
(276.0)
Dividends paid during the
financial year ($'m)
65.0
31.2
88.0
78.8
56.6
(28.2%)
(3.4%)
Closing Share Price ($)
2.76
1.22
1.68
1.94
1.39
(28.4%)
(15.8%)
DPS**** declared (cents)
11.25
6.5
17.5
13.0
7.0
(46.2%)
(11.2%)
*
No STI was paid in FY22.
**
Earnings Per Share.
*** Based on last ASX trading day prior to financial year end (FY25: 27 June 2025; FY24: 28 June 2024).
**** Dividend Per Share.
33
Annual Report 2025
29 June 2025
REMUNERATION REPORT
KMP remuneration and EPS over the last 5 financial years
The graph below shows the relationship between total KMP remuneration and EPS over the past five years and the
relationship between KMP remuneration and Company performance, specifically, the total aggregate remuneration
of the KMP team for each year from FY21 to FY25 as set out in the Remuneration Report each year.
2.00
3.00
4.00
5.00
6.00
7.00
8.00
9.00
10.00
11.00
12.00
13.00
14.00
15.00
17.00
16.00
EPS (cents)
1,000
0
-1000
2,000
3,000
4,000
6,000
7,000
KMP Remuneraon ($'m)
FY21
FY22*
FY23
FY24
FY25
Fixed
STI
LTI
EPS
5,000
*
In FY22 no STIs were paid to KMPs
Company financial performance and share price
0
200
400
600
800
1000
1200
1400
1600
994
1,131
1,422
1,456
1,478
FY21
FY22
FY23
FY24
FY25
FY21 to FY25 Revenues ($m)
0
20
40
60
80
100
120
140
160
125
62
139
110
110
FY25
FY21
FY22
FY23
FY24
FY21 to FY25 EBIT ($m)
0
2
4
6
8
10
12
14
16
18
20
7.00
11.25
10.12
6.50
14.21
5.81
17.50
16.16
13.00
10.61
FY25
FY21
FY22
FY23
FY24
DPS
EPS
FY21 to FY25 DPS & EPS (Cents)
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
14.21
5.81
16.16
10.61
FY25
FY21
FY22
FY23
FY24
10.12
FY21 to FY25 EPS (Cents)
34
Accent Group Limited
29 June 2025
REMUNERATION REPORT
10-year performance of the Company’s share price relative to the ASX200
Remuneration Mix
The total remuneration for the KMP comprises both fixed remuneration and at-risk components in STI and LTI. The table
shown below indicates the potential remuneration mix based on the fixed remuneration as of 29 June 2025 with STI and
LTI presented at maximum and target opportunities respectively.
Executive KMP
Fixed
Remuneration
STI
LTI
Total
Daniel Agostinelli
33.3%
33.3%
33.3%
100%
Matthew Durbin
33.3%
33.3%
33.3%
100%
33.3%
33.3%
33.3%
Matthew
Durbin
Fixed
STI
LTI
33.3%
33.3%
33.3%
Daniel
Agostinelli
Fixed
STI
LTI
AX1
ASX200
FY16
FY17
FY18
FY19
FY20
FY21
FY23
FY24
FY22
FY25
$3.50
$3.00
$2.50
$2.00
$1.50
$0
$0.50
+16.3%
+56.5%
Source: FactSet. Market data as at 30 June 2025
1.
ASX200 share price performance rebased to AX1 from 30 June 2015.
$1.00
FY15
35
Annual Report 2025
29 June 2025
REMUNERATION REPORT
2.2. Fixed Remuneration
Fixed remuneration is set with reference to market competitive rates in comparable ASX listed companies for
similar positions, adjusted to account for the experience, ability and productivity of the individual employee. Fixed
remuneration includes base salary along with any fringe benefits to the employee and statutory superannuation
contributions.
To ensure appropriate and competitive remuneration for FY25, PARCO considered the remuneration levels and
structures for the CEO and CFOO with reference to:
–
external listed comparable remuneration benchmarks
–
the competency and skillsets of the individuals and their performance over the long term
–
the scarcity of talent and the importance and value of retaining key executives
–
changes in the complexity, organisational structure and geographical spread of the Company
The Board has determined that the fixed remuneration for the CEO and CFOO remained appropriate for FY25 and
therefore no increases were applied.
No remuneration consultants provided advice in the FY25 year.
2.3. STI Plan
Purpose and Objectives
The Group’s STI program is designed to drive the Company’s objective of delivering profit growth and shareholder
returns, whilst also ensuring the achievement of strategic objectives that are aligned with current and future profit
growth. KMP have a significant proportion of their STI tied directly to the achievement of profit growth, either for
the Group as a whole or a relevant business unit or both (as the case may be). All STI payments are also subject to an
assessment by PARCO of individual non-financial performance measures related to strategy implementation, leadership
and behaviours consistent with the Group’s values and corporate philosophy.
The Group believes that by implementing the STI program, KMP are best positioned to effectively carry out their duties
in achieving the strategic objectives of the company. The Group also expects KMP to continue to drive the values
engrained within the Group’s culture and Code of Conduct, acting in the best interests of shareholders and other
stakeholders and in turn driving success for the Group along with long term shareholder value creation.
36
Accent Group Limited
29 June 2025
REMUNERATION REPORT
Structure
The STI program in FY25 was structured as follows:
FY25 STI Plan Structure
Performance period
12 months
Opportunity
CEO – 100% of fixed remuneration at maximum
CFOO – 100% of fixed remuneration at maximum
How the STI is paid
Cash
Performance measures/KPIs
1. EBIT growth – 70%
2. Measurable strategic objectives – 30%
Performance conditions
Financial Condition – 70% Weighting
–
Achievement of Accent Group EBIT budget
–
The Group EBIT budget was set at an increase of 39% growth on FY24 to
$153.6m (Hurdle)
–
Achievement of aged inventory of less than 2.5% of total inventory
(Downward Modifier)
Strategic Objectives condition – 30% Weighting
–
The STI award is also subject to achieving the following quantitative strategic
objectives.
1.
Leadership & Management
Assessment of leadership effectiveness – Board Review
2. Culture and Sustainability
Assessment of performance in respect of driving expected culture and
business sustainability – Board Review
3. Other executive strategic measures
Average performance of the executive team’s strategic measures, evaluated
on a sliding scale
How is STI assessed?
PARCO reviews the CEO’s performance against the performance targets and
objectives set for that year. The CEO assesses the performance of the senior executive
team, with the CEO having oversight of his direct reports and the day-to-day
functions of the Company.
The performance assessment of the CEO and CFOO are reviewed by PARCO and
then recommended for Board approval.
What happens when KMP
ceases employment?
If the employment of KMP is terminated for cause, no STI will be paid.
If the KMP resigns or is considered a good leaver prior to the completion of
the performance period, the STI may be granted on a pro rata basis in relation
to the period of service completed, subject to the discretion of the Board and
conditional upon the individual performance of the KMP.
Malus and Clawback
In the event of serious misconduct or a material misstatement in the Group’s
financial statements, the Board may cancel the STI payment and may also claw
back STI payments paid in previous financial years, to the extent this can be done
in accordance with the law.
37
Annual Report 2025
29 June 2025
REMUNERATION REPORT
FY25 STI Plan Structure
Is there any STI deferral?
The STI awards are currently delivered fully in cash and vest at the end of the
one-year period, subject to the achievement of the performance conditions. The
Board periodically reviews the appropriateness of a deferral of a portion of the
STI into equity. After this year’s review, the Board determined that a deferral is
currently not appropriate for the Group in light of the size of the Group and the KMP
team, as well as the CEO’s current equity ownership in the Company consisting
of 18,500,001 shares which represent 3.08% of issued capital and an interest in a
further 3,419,046 performance rights through the Performance Rights Plan (PRP).
The Board is of the view that the objectives of a deferral (i.e. retention and risk
management) are currently satisfied through the KMPs’ participation in the PRP
and existing share ownership.
STI outcomes FY25
Compared to FY24, FY25 revenue was up 1.5%, EBIT was down 0.2% and EPS was down 4.6%. EBIT growth for FY25 did
not meet the 39% growth from FY24 required to meet the FY25 STI outcome.
Financial Condition
70% of award based on the achievement of the Group EBIT Budget: Not achieved
EBIT for FY25 did not meet the required 39% EBIT growth and as a result did not meet the requirement for the payment
of this component.
Strategic Objectives
30% of the STI award for the CEO and CFO is based on measurable strategic objectives. Performance against these
objectives along with the weighting applied to each objective is outlined in the table below.
Based on the performance against these strategic objectives 24.7% of a total opportunity of 30% was awarded.
Objective
Outcomes
Achieved
STI allocation
Weighting
STI outcome
Leadership &
Management
–
Assessment of
leadership effectiveness
– Board Review
–
Achieved
Y
10%
10%
Culture and
Sustainability:
–
Assessment of
performance in respect
of driving expected
culture and business
sustainability – Board
Review
–
Achieved
Y
10%
10%
Divisional
strategic
measures
–
Based on average
performance of the
executive team’s
strategic measures
–
Partially
achieved
P
10%
4.7%
Total
30.0%
24.7%
The table below sets out the performance of the CEO and CFOO in relation to the STI program:
Financial
Performance
target
Performance
outcome
Strategic
objectives
outcome
Maximum STI
available
Achievement*
FY24
FY25
CEO – Daniel
Agostinelli
Group EBIT
Budget
Did not achieve
Partial
achievement
24.7%
100% of fixed
remuneration
10.2%
24.7%
CFOO – Matthew
Durbin
Group EBIT
Budget
Did not achieve
Partial
achievement
24.7%
100% of fixed
remuneration
10.2%
24.7%
*
Achievement represents the amount achieved as a percentage of the maximum available.
38
Accent Group Limited
29 June 2025
REMUNERATION REPORT
2.4. LTI Plan
Purpose and Objectives
The Company has implemented an LTI program through the Performance Rights Plan (PRP), first approved by
shareholders at the Company’s 2016 Annual General Meeting. The objectives of this plan are:
–
to drive long-term value creation for shareholders; and
–
to attract, motivate and retain key employees, and for them to share in the value created for all shareholders of the
Company.
The PRP operates under the rules most recently approved by shareholders at the Company's 2019 Annual General
Meeting.
In respect of Tranche 7 issued in FY24, Target performance requires the achievement of 10% or greater
compounding adjusted diluted earnings per share growth over the relevant performance period. In respect
of Tranche 8 issued in FY25, Target performance requires the achievement of 22.3% or greater compounding
adjusted diluted earnings per share growth over the relevant performance period. The Board periodically evaluates
the impact and relevance of this performance measure and considers it to be effective in achieving the stated
objectives since the plan has been successful in driving strong performance since its inception in FY17.
Structure
During FY25, a new issue of Performance Rights was made (Tranche 8) with the structure set out below:
FY25-FY27 LTI Plan (Tranche 8) Structure
Performance/vesting period
3 years from FY25-FY27 plus a one-year escrow period to the end of FY28
following the completion of the performance period
Maximum opportunity
–
CEO – 150% of fixed remuneration
–
CFOO – 150% of fixed remuneration
Instrument
Performance Rights
Performance metric
Compound adjusted diluted earnings per share (ADEPS) growth over 3 years
(100%)
Vesting condition
50% of award opportunity vesting at Threshold – 20.8% ADEPS growth
100% of award opportunity vesting at Target – 22.3% ADEPS growth
150%1 of award opportunity vesting at Stretch - 26% ADEPS growth
Straight-line vesting occurs between 20.8% and 26%
No portion of an award will vest if compound ADEPS growth is less than 20.8%
Awards are also subject to a service condition requiring the participant to remain
employed by the Group until the end of the vesting period (three years in total)
Rationale for the performance
metric and condition
In consultation with shareholders and other market participants, and based on a
benchmark review of relevant ASX listed companies, the Board has determined
that earnings per share growth is a widely used and well understood indicator
of company performance and a long-term driver of shareholder value creation
through the link to share price and dividend growth.
Earnings per share growth represents a transparent and well understood metric
for both shareholders and management that is not subject to market outcomes
but rather is a direct outcome of the strategic and operational efforts of the
management team over time. ADEPS also incorporates all the aspects of the
Company’s financial performance that are within management’s control.
Tranche 8 of the LTI requires a minimum 20.8% compound ADEPS growth and
delivers increasing outcomes as compound ADEPS growth factor exceeds 20.8%
up to a stretch target of 26%.
1
150% of award opportunity represents total performance rights granted to the respective eligible employees.
39
Annual Report 2025
29 June 2025
REMUNERATION REPORT
FY25-FY27 LTI Plan (Tranche 8) Structure
What happens when a KMP
ceases employment?
If the KMP’s employment is terminated for cause, or due to resignation, all
unvested Performance Rights will lapse, unless the Board determines otherwise.
In all other circumstances, unless the Board decides otherwise, a pro-rata portion
of the KMP’s Performance Rights, calculated in accordance with the proportion
of the performance period that has elapsed, will remain on foot, subject to the
performance condition as set by the Board. If and when the Performance Rights
vest, shares will be allocated in accordance with the plan rules and any other
condition of the grant.
Malus and clawback
In the event of fraud, dishonesty, gross misconduct, acts of harassment or
discrimination or a material misstatement or omission in the Company’s financial
statements, the Board may deem any unvested Performance Rights and/or any
vested and unexercised Performance Rights of the participant to have lapsed.
Dividends and voting rights
Performance rights do not confer on the holder any entitlement to any dividends
or other distributions by the Group or any right to attend or vote at any general
meeting of the Group.
Re-testing
Awards are tested once, at the end of the performance period of three years.
There is no further retesting of the performance conditions
Change of Control provision
In the event of a Change of Control (including a takeover scheme or arrangement
or winding up of the company), Performance Rights automatically and
immediately vest from the date of the event in the proportion that the Group’s
share price has increased since the date of grant of the Performance Rights.
The Board may determine that all or a specified amount of the participant’s
remaining unvested Performance Rights automatically and immediately vest.
LTI Outcomes FY25
CEO & CFOO FY25 Long Term Incentive
PARCO recommended the issuance of performance rights under the PRP to the CEO and CFOO with a performance
date of September 2027 (Tranche 8 detailed above). This new issuance of Performance Rights to the CEO was approved
by Shareholders at the Company’s Annual General Meeting on 21 November 2024.
CEO & CFOO Long Term Incentive
Tranche 6 (FY22-FY25) of the PRP
The FY22-FY25 PRP (Tranche 6, issued in November 2021), included the following performance and retention
conditions:
–
a performance condition requiring that between 8% (Threshold) and 15% (Stretch) compound ADEPS growth per
annum be achieved over the performance period FY22-FY25 with the required ADEPS per share to be achieved in
FY25 being at least 15.14 cents per share (Threshold)
–
a retention condition requiring the participant to be employed and to not have resigned by 1 September 2025
In respect of FY25 the ADEPS achieved was 10.12 cents per share, and as such, the required minimum performance
condition was not met, and no rights will be vested in respect of Tranche 6.
Tranche 7 (FY23-FY26) of the PRP
The FY23-FY26 (Tranche 7, issued in November 2022), included the following performance and retention conditions:
–
a performance condition requiring that between 8% (Threshold) and 15% (Stretch) compound ADEPS growth per
annum be achieved over the performance period FY23-FY26 with the requires ADEPS per share to be achieved in
FY26 being at least 16.35 cents per share (Threshold)
–
a retention condition requiring that the participant to be employment and to not have resigned by 1 September 2026
The performance condition will be tested in FY26.
Tranche 8 (FY25-FY27) of the PRP
In the context of the recent economic conditions and a challenging consumer environment, the Board intends to review
the performance hurdles set for FY25-FY27 PRP (Tranche 8, issued in November 2024) to ensure that the overall
structure of these tranches continue to provide appropriate performance and retention incentives for participants.
40
Accent Group Limited
29 June 2025
REMUNERATION REPORT
2.5. Other Information
Key terms of executive employment contracts
The remuneration and other terms of employment of the CEO and CFOO are set out in individual employment contracts
that are not fixed-term contracts.
Name
Notice period/termination payment
Daniel Agostinelli
12 months’ notice by either party (or payment in lieu)
Matthew Durbin
6 months’ notice by either party (or payment in lieu)
2.6. Non-Executive Directors Remuneration
On an annual basis, PARCO considers the fees payable to Non-Executive Directors. When considering the level of
fees, the Committee undertakes a review of benchmark fees paid by similar organisations and may access independent
advice as well as drawing on the knowledge and experience of its members. PARCO makes recommendations on
Non-Executive Director fees to the Board. Non-Executive Directors can choose, subject to certain restrictions, the
amount of their fees allotted to superannuation.
The aggregate fee limit of $1,200,000 was approved by shareholders at the 2019 AGM.
In August 2023, in recognition of the additional demands and responsibilities of these roles, the Board approved
an incremental increase of $20,000 each for the Chair of the Audit & Risk Committee and Chair of the People &
Remuneration Committee (provided that the Chair of the People & Remuneration Committee was also not the Chair
of the Board) moving forward. On 1 July 2024, the base Directors’ fees increased by 5.2%.
2025
$
Board Chair
312,444
Audit and Risk Committee Chair
145,000
People and Remuneration Committee Chair
145,000
Non-Executive Directors
125,000
41
Annual Report 2025
29 June 2025
REMUNERATION REPORT
REMUNERATION OF KEY MANAGEMENT PERSONNEL
2.7. Table of remuneration to KMP (calculated in accordance with Australian Accounting Standards)
Short-term benefits
Long-term
benefits
Post
employment
benefits
Share-based
payments
Year
Cash salary
and fees1
$
Cash
bonus2
$
Other
monetary
$
Accrued
leave
benefits1
$
Super-
annuation
$
Equity
settled3
$
Total
$
Non-executive
Directors
D Gordon
2025
282,444
–
–
–
30,000
–
312,444
2024
269,500
–
–
–
27,500
–
297,000
M Hapgood
2025
125,000
–
–
–
–
–
125,000
2024
118,800
–
–
–
–
–
118,800
D Player
2025
112,108
–
–
–
12,892
–
125,000
2024
107,027
–
–
–
11,773
–
118,800
B Blundy
(resigned
28 August 2024)
2025
20,833
–
–
–
–
–
20,833
2024
118,800
–
–
–
–
–
118,800
A Loveridge AM
2025
145,000
–
–
–
–
–
145,000
2024
84,195
–
–
–
1,671
–
85,866
L Myers
2025
145,000
–
–
–
–
–
145,000
2024
66,039
–
–
–
7,264
–
73,303
D Forsey
(appointed
21 November 2024)
2025
73,166
–
–
–
3,223
–
76,389
2024
–
–
–
–
–
–
–
Former non-executive
Directors
S Goddard (resigned
17 November 2023)
2025
–
–
–
–
–
–
–
2024
46,174
–
–
–
5,079
–
51,253
J Lowcock (resigned
17 November 2023)
2025
–
–
–
–
–
–
–
2024
39,600
–
–
–
–
–
39,600
Executive Directors
and other KMP
D Agostinelli
2025
1,618,613
419,900
15,472
155,665
30,000
(614,229)
1,625,421
2024
1,530,981
172,890
13,189
173,085
27,500
(518,426)
1,399,219
M Durbin
2025
613,302
172,900
–
62,446
30,000
(261,712)
616,936
2024
618,183
71,190
–
103,579
27,500
(226,096)
594,356
Total
2025
3,135,466
592,800
15,472
218,111
106,115
(875,941)
3,192,023
2024
2,999,299
244,080
13,189
276,664
108,287
(744,522)
2,896,997
1
Cash salary and fees relate to base salary excluding annual leave but including an accrual for annual leave not taken. Long-term benefits relate to
statutory annual leave and long service leave accruals.
2
Cash bonuses relate to STI bonuses issued on the basis of the achievement of relevant performance measures for the year ended 29 June 2025 and
were approved by PARCO and the Board in August 2025.
3
Share-based payments represent performance rights. The fair value of performance rights is measured at grant date and progressively allocated to
profit and loss over the vesting period. The amount included in remuneration above may not be indicative of the benefit (if any) that key management
personnel may ultimately realise should the performance rights vest.
42
Accent Group Limited
29 June 2025
REMUNERATION REPORT
PERFORMANCE RIGHTS PLAN (PRP)
The table below sets out the details of KMP Performance Rights for unvested plans issued under the Company’s PRP:
Issue
Number of
Rights
Grant Date
Exercise
Price
Vesting
Date
Vesting
condition
% Achieved
Number
of rights
exercised
Number
of rights
forfeited
Current
balance
Tranche 4
1,136,646
30 Nov 19
Nil
1 Jul 24
ADEPS
hurdle
100%
1,136,646
0
0
Tranche 5
1,748,408
18 Nov 20
Nil
1 Sep 24
ADEPS
hurdle –
sliding scale
0%
0
1,748,408
0
Tranche 6
1,459,276
27 Sep 21
Nil
1 Sep 25
ADEPS
hurdle –
sliding scale
0%
0
0
1,459,276
Tranche 7
504,754
2 Nov 23
Nil
1 Sep 26
ADEPS
hurdle –
sliding scale
To be
determined
0
0
504,754
Tranche 7
1,225,831
17 Nov 23
Nil
1 Sep 26
ADEPS
hurdle –
sliding scale
To be
determined
0
0
1,225,831
Tranche 8
483,871
24 Jan 25
Nil
1 Sep 27
ADEPS
hurdle-
sliding scale
To be
determined
0
0
483,871
Tranche 8
1,175,115
21 Nov 24
Nil
1 Sep 27
ADEPS
hurdle-
sliding scale
To be
determined
0
0
1,175,115
Total
7,733,901
1,136,646
1,748,408
4,848,847
The table below sets out the detailed conditions for each tranche of KMP performance rights for unvested plans.
Issue
Current
Balance
ADEPS Hurdle – Expressed as
CAGR over the performance period
Retention condition
Threshold
Target
Stretch
Tranche 6
1,459,276
8%
10%
15%
Must be employed and not have
resigned at 1 September 25
Tranche 7
1,730,585
8%
10%
15%
Must be employed and not have
resigned at 1 September 26
Tranche 8
1,658,986
20.8%
22.3%
26%
Must be employed and not have
resigned at 1 September 27
Total
4,848,847
43
Annual Report 2025
29 June 2025
REMUNERATION REPORT
PERFORMANCE RIGHTS OF THE CEO AND CFOO
The unvested Performance Rights of the CEO and CFOO under the PRP are set below:
Balance as at
1 July 2024
Granted
Vested
Forfeited
Unvested
balance as
at 29 June
2025
Value at
grant date
Minimum
value to vest
Maximum
Value to vest
CEO – Daniel
Agostinelli
Tranche 4
795,031
–
795,031
–
–
$1,042,724
–
–
Tranche 5
1,222,930
–
–
1,222,930
–
$1,638,692
–
–
Tranche 6
1,018,100
–
–
–
1,018,100
$1,759,019
–
$1,759,019
Tranche 7
1,225,831
–
–
–
1,225,831
$1,843,022
–
$1,843,022
Tranche 81
–
1,175,115
–
–
1,175,115
$2,201,787
–
$2,201,787
Total
4,261,892
1,175,115
795,031
1,222,930
3,419,046 $8,485,244
– $5,803,828
CFOO – Matthew
Durbin
Tranche 4
341,615
–
341,615
–
–
$448,046
–
–
Tranche 5
525,478
–
–
525,478
–
$704,126
–
–
Tranche 6
441,176
–
–
–
441,176
$762,240
–
$762,240
Tranche 7
504,754
–
–
–
504,754
$756,078
–
$756,078
Tranche 81
–
483,871
–
–
483,871
$949,544
–
$949,544
Total
1,813,023
483,871
341,615
525,478
1,429,801 $3,620,034
– $2,467,862
1
Fair values at the respective grant dates were $1.87 and $1.96 for the CEO and CFOO respectively.
Refer to section 2.7 above for the proportion of the CEO and CFOO’s remuneration that represents the PRP allocation
for the year ended 29 June 2025.
2.8. Loans and Transactions with Key Management Personnel
Key management personnel have family members employed by the Group on an arm’s length basis. There were no other
related party transactions during the year.
There were no loans outstanding and no balances receivable or owing at the reporting date between the Company, or
any of its subsidiaries, and its KMP (including their related parties).
44
Accent Group Limited
29 June 2025
REMUNERATION REPORT
3.
SHAREHOLDINGS OF KMP
The number of shares in the Company held during the financial year by each Director and other members of key
management personnel of the Group, including their related parties, is set out below:
Name
Balance at
start of year
Received on
exercise of
performance
rights
Additions
Disposals
Balance at
end of year
Daniel Agostinelli
20,753,001
795,031
–
3,048,031
18,500,001
Matthew Durbin
2,300,000
341,615
–
1,950,000
691,615
David Gordon
2,599,034
–
–
–
2,599,034
Donna Player
50,000
–
–
–
50,000
Michael Hapgood
7,500,000
–
–
–
7,500,000
David Forsey1
–
–
–
–
–
Brett Blundy2
82,477,463
–
–
82,477,463
–
Timothy Dodd2
30,046
–
–
–
30,046
Lawrence Myers
1,200,000
–
1,060,000
–
2,260,000
Anne Loveridge AM
30,000
–
–
–
30,000
Total
116,939,544
1,136,646
1,060,000
87,475,494
31,660,696
1
Additions represent shareholding since appointment date 21 November 2024.
2
Balances at end of year represent shareholding as at resignation date 28 August 2024.
The Remuneration Report has been audited as required by section 308(3c) of the Corporations Act 2001.
This Directors’ Report, which includes the Remuneration Report, is made in accordance with a resolution of Directors,
pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
Lawrence Myers
Chairman
22 August 2025
45
Annual Report 2025
pwc.com.au
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006,
GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Auditor’s Independence Declaration
As lead auditor for the audit of Accent Group Limited for the period 1 July 2024 to 29 June 2025, I
declare that to the best of my knowledge and belief, there have been:
a. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation
to the audit; and
b. no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Accent Group Limited and the entities it controlled during the period.
Alison Tait Milner
Melbourne
Partner
PricewaterhouseCoopers
22 August 2025
AUDITOR’S INDEPENDENCE DECLARATION
46
Accent Group Limited
for the year ended 29 June 2025
Note
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Revenue
6
1,476,262
1,454,352
Interest revenue
1,787
1,861
Expenses
Cost of sales
7
(657,560)
(634,754)
Distribution
(63,573)
(63,068)
Marketing
(45,705)
(42,219)
Occupancy
7
(24,301)
(36,209)
Employee expenses
7
(321,964)
(310,402)
Other
(74,328)
(74,013)
Depreciation, amortisation and impairment
7
(178,627)
(183,293)
Finance costs
7
(29,995)
(27,839)
Profit before income tax expense
81,996
84,416
Income tax expense
8
(24,336)
(24,886)
Profit after income tax expense for the year
57,660
59,530
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net change in the fair value of cash flow hedges taken to equity, net of tax
(2,833)
(2,031)
Foreign currency translation
320
(61)
Other comprehensive income for the year, net of tax
(2,513)
(2,092)
Total comprehensive income for the year
55,147
57,438
Profit for the year is attributable to:
Owners of Accent Group Limited
57,660
59,530
57,660
59,530
Total comprehensive income for the year is attributable to:
Owners of Accent Group Limited
55,147
57,438
55,147
57,438
Cents
Cents
Basic earnings per share
38
10.12
10.61
Diluted earnings per share
38
10.12
10.55
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME
47
Annual Report 2025
as at 29 June 2025
Note
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Current assets
Cash and cash equivalents
39,561
28,051
Trade and other receivables
9
34,223
36,832
Inventories
10
308,556
264,844
Lease receivables
11
5,837
7,459
Other current assets
13
6,594
6,326
Current tax receivable
7,796
2,957
Total current assets
402,567
346,469
Non-current assets
Property, plant and equipment
14
111,465
121,403
Right-of-use assets
15
285,933
265,413
Lease receivables
11
10,574
8,484
Intangibles
16
416,282
384,014
Net deferred tax assets
17
26,182
22,164
Total non-current assets
850,436
801,478
Total assets
1,253,003
1,147,947
Current liabilities
Trade and other payables
18
200,873
151,287
Deferred revenue
19
11,116
11,593
Provisions
20
20,994
20,662
Borrowings
21
–
10,659
Lease liabilities
22
131,190
138,039
Derivative financial instruments
12
5,611
315
Total current liabilities
369,784
332,555
Non-current liabilities
Provisions
20
2,081
1,736
Deferred revenue
19
1,578
1,346
Borrowings
21
139,594
139,594
Lease liabilities
22
264,876
253,911
Total non-current liabilities
408,129
396,587
Total liabilities
777,913
729,142
Net assets
475,090
418,805
Equity
Issued capital
23
451,377
390,926
Reserves
24
28,620
33,846
(Accumulated losses)/Retained earnings
(4,907)
(5,967)
Total equity
475,090
418,805
The above consolidated statement of financial position should be read in conjunction with the accompanying notes
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
48
Accent Group Limited
for the year ended 29 June 2025
Consolidated
Issued
capital
$'000
Foreign
currency
translation
reserve
$'000
Hedging
reserve - cash
flow
hedges
$'000
Share-based
payments
reserve
$'000
(Accumulated
losses)/
Retained
earnings
$'000
Total equity
$'000
Balance at 3 July 2023
390,926
1,202
2,135
33,619
13,330
441,212
Profit after income tax expense
for the year
–
–
–
–
59,530
59,530
Other comprehensive income
for the year, net of tax
–
(61)
(2,031)
–
–
(2,092)
Total comprehensive income for
the year
–
(61)
(2,031)
–
59,530
57,438
Transactions with owners in their
capacity as owners:
Share-based payments
–
–
–
(1,018)
–
(1,018)
Dividends paid (Note 25)
–
–
–
–
(78,827)
(78,827)
Balance at 30 June 2024
390,926
1,141
104
32,601
(5,967)
418,805
Consolidated
Issued
capital
$'000
Foreign
currency
translation
reserve
$'000
Hedging
reserve - cash
flow
hedges
$'000
Share-based
payments
reserve
$'000
(Accumulated
losses)/
Retained
earnings
$'000
Total equity
$'000
Balance at 1 July 2024
390,926
1,141
104
32,601
(5,967)
418,805
Profit after income tax expense
for the year
–
–
–
–
57,660
57,660
Other comprehensive income
for the year, net of tax
–
320
(2,833)
–
–
(2,513)
Total comprehensive income
for the year
–
320
(2,833)
–
57,660
55,147
Transactions with owners in their
capacity as owners:
Share-based payments
–
–
–
(2,713)
–
(2,713)
Private share placement (Note 23)
60,451
–
–
–
–
60,451
Dividends paid (Note 25)
–
–
–
–
(56,600)
(56,600)
Balance at 29 June 2025
451,377
1,461
(2,729)
29,888
(4,907)
475,090
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
49
Annual Report 2025
for the year ended 29 June 2025
Note
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Cash flows from operating activities
Receipts from customers and franchisees (inclusive of GST)
1,633,630
1,603,488
Payments to suppliers and employees (inclusive of GST)
(1,334,300)
(1,301,776)
Interest received
889
1,038
Interest and other finance costs paid
(11,378)
(10,653)
Interest on lease liabilities
(17,378)
(15,975)
Income taxes paid
(24,346)
(30,071)
Net cash from operating activities
37
247,117
246,051
Cash flows from investing activities
Payments for property, plant and equipment(1)
(31,620)
(24,840)
Payments for intangibles
16
(11,354)
(6,983)
Proceeds from disposal of The Trybe
2,223
–
Payment for purchase of businesses, net of cash acquired
34
(32,599)
(2,211)
Net cash used in investing activities
(73,350)
(34,034)
Cash flows from financing activities
Proceeds from issue of shares, net of transaction costs
23
60,451
–
Proceeds from borrowings
–
1,000
Repayment of borrowings
(11,000)
–
Payments for debt transaction costs
–
(439)
Payment of lease liabilities
(153,833)
(135,441)
Dividends paid
25
(56,600)
(78,827)
Net cash used in financing activities
(160,982)
(213,707)
Net increase/(decrease) in cash and cash equivalents
12,785
(1,690)
Cash and cash equivalents at the beginning of the financial year
28,051
29,722
Effects of exchange rate changes on cash and cash equivalents
(1,275)
19
Cash and cash equivalents at the end of the financial year
39,561
28,051
(1) Payments for property, plant and equipment are net of cash fit-out contributions received from landlords of $10,601,000 (2024: $17,402,000)
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes
CONSOLIDATED STATEMENT OF CASH FLOWS
50
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
NOTE 1.
GENERAL INFORMATION
The financial statements cover Accent Group Limited ('Company', 'parent entity' or 'Accent') as a Group consisting of
Accent Group Limited and the entities it controlled at the end of, or during, the year ('Group'). The financial statements
are presented in Australian dollars, which is Accent's functional and presentation currency.
Accent is a listed public company limited by shares, listed on the Australian Securities Exchange (‘ASX’), incorporated
and domiciled in Australia. Its registered office and principal place of business is:
2/64 Balmain Street
Richmond VIC 3121
A description of the nature of the Group's operations and its principal activities are included in the directors' report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 22 August 2025. The
directors have the power to amend and reissue the financial statements.
NOTE 2. BASIS OF PREPARATION
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001, as
appropriate for for-profit oriented entities. These financial statements also comply with International Financial Reporting
Standards as issued by the International Accounting Standards Board ('IASB').
The financial statements have been prepared under the historical cost convention, except for, where applicable:
–
Derivative financial instruments which have been fair valued at balance date. Refer to Note 12;
–
Share-based payments which have been measured at fair value at grant date. Refer to Note 39; and
–
Certain non-financial assets which have been measured at fair value less cost of disposal. Refer to Note 15.
The current financial year, 1 July 2024 to 29 June 2025, represents 52 weeks and the comparative financial year is
from 3 July 2023 to 30 June 2024 which represents 52 weeks. From time to time, management may change prior year
comparatives to reflect classifications applied in the current year.
Critical accounting estimates
The preparation of consolidated financial statements requires the Group to make estimates and judgements that affect
the application of policies and reported amounts. The estimates which could cause a significant risk of causing a material
adjustment to the carrying amount of assets and liabilities within the next 12 months are disclosed in the following notes:
–
Note 10
Inventories
–
Note 14
Property, plant and equipment
–
Note 15
Right-of-use assets
–
Note 16
Intangibles
–
Note 20
Provisions
–
Note 34
Business combinations
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Accent Group Limited as
at 29 June 2025 and the results of all subsidiaries for the year then ended. A list of subsidiaries at year end is contained in
Note 35. Supplementary information about the parent entity is disclosed in Note 33.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses
and profits and losses resulting from intragroup transactions have been eliminated. Subsidiaries are consolidated
from the date on which control is obtained to the date on which control is disposed. The acquisition of subsidiaries is
accounted for using the acquisition method.
If the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling
interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group
recognises the fair value of the consideration received and the fair value of any investment retained together with any
gain or loss in profit or loss.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
51
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 2. BASIS OF PREPARATION (CONTINUED)
Foreign operations
The functional currencies of overseas subsidiaries are listed in Note 35. The assets and liabilities of overseas subsidiaries
are translated into Australian dollars at the rate as at reporting date and the income statements are translated at the
average exchange rates for the year. The exchange differences arising on the retranslation are taken directly to a
separate component of equity.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Comparatives have been reclassified where appropriate to ensure consistency and comparability with the current period.
NOTE 3. ACCOUNTING POLICIES
Material and other accounting policies adopted in the preparation of the financial statements are provided throughout
the notes. These policies have been consistently applied to all the years presented, unless otherwise stated.
NOTE 4. NEW OR AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED
In the current year, the Group has adopted all of the following new and revised Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board ('AASB') that are relevant to its operations and mandatory for the
current annual reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant
to the Group include:
–
Amendments to Australian Accounting Standards – Classification of Liabilities as Current or Non-Current (AASB
2020-1)
–
Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback (AASB 2022-5)
–
Amendments to Australian Accounting Standards – Non-Current Liabilities with Covenants (AASB 2022-6)
The above standards and interpretations have not led to any changes to the Group's accounting policies or had any other
material impact on the financial position or performance of the Group.
NOTE 5. OPERATING SEGMENTS
The Group is required to determine and present its operating segments based on the way in which financial information
is organised and reported to the chief operating decision-makers (CODMs). The CODMs have been identified as the
Board of Directors on the basis they make the key operating decisions of the Group and are responsible for allocating
resources and assessing performance.
Based on the internal reports that are reviewed and used by the CODMs in assessing performance and in determining
the allocation of resources, the consolidated entity is organised into two operating segments. There is no aggregation of
operating segments.
The CODMs assess the performance of the operating segments based on a measure of Management Pre-AASB 16 EBIT
(earnings before interest and tax) prior to the impact of AASB 16 Leases and non-operating intercompany charges.
Retail and Wholesale businesses are identified as two separate operating segments in line with the way in which financial
information is organised and reported to the CODMs.
Support costs comprise of costs attributable to the support functions such as IT, Legal, Finance and Property Leasing.
Reportable segments
Operations
Retail
Sale of footwear and apparel directly to consumers
Wholesale
Sale of footwear and apparel in bulk internally and to other businesses
52
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 5. OPERATING SEGMENTS (CONTINUED)
Operating segment information
Reportable Segments
52-week financial year ended 29 June 2025
Retail
$'000
Wholesale
$'000
Support
Costs
$'000
Consolidated
$'000
Revenue
Total sales revenue
1,303,511
459,709
–
1,763,220
Inter-segment revenue
–
(304,883)
–
(304,883)
Revenue from external customers
1,303,511
154,826
–
1,458,337
Management Pre-AASB 16 EBIT(1)
162,830
11,957
(82,115)
92,672
Reconciliation of Management Pre-AASB16 EBIT to profit after income tax expense is as follows:
Management Pre-AASB 16 EBIT
92,672
AASB 16 Leases impact
17,532
Reported EBIT
110,204
Finance costs
(29,995)
Interest revenue
1,787
Profit before income tax expense
81,996
Income tax expense
(24,336)
Profit after income tax expense
57,660
Reportable Segments
52-week financial year ended 30 June 2024
Retail
$'000
Wholesale
$'000
Support
Costs
$'000
Consolidated
$'000
Revenue
Total sales revenue
1,271,294
463,199
–
1,734,493
Inter-segment revenue
–
(299,595)
–
(299,595)
Revenue from external customers
1,271,294
163,604
–
1,434,898
Management Pre-AASB 16 EBIT(2)
163,404
16,476
(79,231)
100,649
Reconciliation of Management Pre-AASB16 EBIT to profit after income tax expense is as follows:
Management Pre-AASB 16 EBIT
100,649
AASB 16 Leases impact
9,745
Reported EBIT
110,394
Finance costs
(27,839)
Interest revenue
1,861
Profit before income tax expense
84,416
Income tax expense
(24,886)
Profit after income tax expense
59,530
(1) Included in the Group management pre-AASB16 EBIT are non-recurring items relating to H1 FY25 of $3,320,000 which comprise of an impairment
reversal of $9,714,000 for the Hype DC brand, an impairment charge of $3,812,000 for Vans retail stores (2024: $14,134,000 for Glue Store) and
one-off costs and trading losses of $2,582,000 relating to the discontinuation of the CAT brand distribution and the divestment of The Trybe. Of
these items, $3,983,000 of positive pre-AASB16 EBIT are included in Retail operating segment and $663,000 negative pre-AASB16 EBIT included
in Wholesale operating segment.
(2) Support costs for the year ended 29 June 2025 include expenses that were previously classified within the Retail segment for the year ended 30 June
2024. Had FY24 support costs been reclassified in line with FY25, the support costs would have been $81,933,000.
53
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 6. REVENUE
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Sales revenue
Sales to customers
1,458,337
1,434,898
Royalties and other franchise related income
12,563
13,177
1,470,900
1,448,075
Other revenue
Marketing levies received from TAF stores
5,362
5,913
Other revenue
–
364
5,362
6,277
Revenue
1,476,262
1,454,352
The following table summarises sales to customers by geographic location of the Group:
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Australia
1,298,225
1,272,921
New Zealand
160,112
161,977
Sales to customers
1,458,337
1,434,898
Recognition and measurement
The major sources of the Group’s revenue are from sales to customers and royalties and other franchise related income
received from The Athlete’s Foot (TAF) stores. The Group’s revenue is principally generated on a ‘point in time’ basis.
Sales to customers
Sales to customers of goods comprise the sale of branded performance and lifestyle footwear, apparel and
accessories to customers outside the Group less discounts, markdowns, loyalty scheme vouchers and an appropriate
deduction for actual and expected returns. Sales to customers are stated net of tax. Revenue is recognised when
performance obligations are satisfied, typically being where goods are delivered to the customer and the control of
goods is transferred to the buyer.
Gift cards are considered a prepayment for goods to be delivered in the future. The Group has an obligation to transfer
the goods in the future, creating a performance obligation. The Group recognises deferred revenue when the gift card
is purchased and recognises revenue when the customer redeems the gift card and the Group fulfills the performance
obligation.
Royalties and other franchise related income
Franchise royalty fee income is earned based upon a percentage of sales that has occurred and is recognised on an
accrual basis.
Franchise establishment fees are recognised as income over the term of the Franchise Agreement. Franchise
establishment fees are recognised on an ‘over time’ basis.
Marketing levies
Marketing levies are recognised in the period the sales are recorded by TAF stores. Marketing levies are collected by
the Group for specific use within the TAF Marketing Fund, which is operated on behalf of the TAF network. Expenses
in relation to the marketing of TAF stores are recorded within marketing expenses in the profit or loss. In any given
year, a deficit in the marketing fund will need to be recouped in the following year and any surplus in the marketing
fund will need to be spent in the subsequent year.
54
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 7. EXPENSES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Profit before income tax includes the following specific expenses:
Depreciation
Right-of-use assets
131,182
115,200
Plant and equipment
46,799
47,293
Total depreciation
177,981
162,493
Amortisation
Licence fee
32
32
Re-acquired rights
844
724
Software
6,372
5,910
Total amortisation
7,248
6,666
Impairment of assets
Impairment charge/(reversal) – right-of-use assets
(1,305)
3,877
Impairment charge/(reversal) – intangibles
(9,714)
–
Impairment charge/(reversal) – property, plant and equipment
4,417
10,257
Total impairment
(6,602)
14,134
Total depreciation, amortisation and impairment
178,627
183,293
Finance costs
Interest and finance charges paid/payable on borrowings
11,719
11,041
Interest and finance charges paid/payable on lease liabilities
18,276
16,798
Finance costs expensed
29,995
27,839
Occupancy
Variable lease payments
20,943
21,343
Other occupancy costs
3,358
14,866
Total occupancy
24,301
36,209
Employee expenses
Share-based payments (income)/expense
(2,630)
(2,528)
Cost of sales
Cost of sales comprises cost of inventories sold, incoming freight and related duties.
Occupancy
During the financial year ended 29 June 2025, the Group changed its accounting policy to account for holdover leases
in accordance with AASB 16 Leases resulting in a decrease in occupancy expenses and an increase in depreciation
for right-of-use assets as compared to the prior financial year ended 30 June 2024. No change was made to the
comparative period.
55
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 8. INCOME TAX EXPENSE
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Income tax expense
Current tax
18,984
26,978
Deferred tax
5,090
(2,562)
Adjustment recognised for prior periods – Deferred tax
(608)
365
Adjustment recognised for prior periods – Current tax
870
105
Aggregate income tax expense
24,336
24,886
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense
81,996
84,416
Tax at the statutory tax rate of 30%
24,599
25,325
Tax effect amounts which are not (deductible)/taxable in calculating taxable income:
Entertainment expenses
53
(75)
Impairment of assets
–
76
Sundry items
(548)
(661)
24,104
24,665
Adjustment recognised for prior periods
262
470
Difference in overseas tax rates
(30)
(249)
Income tax expense
24,336
24,886
Amounts recognised directly to other comprehensive income
Tax effect of hedges in reserves
(1,457)
(868)
Tax effect of share-based payments in reserves
82
(1,510)
Total tax effect recognised directly to other comprehensive income
(1,375)
(2,378)
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Capital losses (tax-effected)
7,199
7,199
Total deferred tax assets not recognised
7,199
7,199
The above potential tax benefit, which excludes tax losses for deductible temporary differences, has not been
recognised in the statement of financial position as the recovery of this benefit is uncertain.
Recognition and measurement
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation
authorities at the tax rates and tax laws enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is accounted for using the balance sheet liability method, providing for temporary differences between
the carrying amounts of assets and liabilities under financial reporting and taxation purposes. Deferred tax is measured
at the rates that are expected to apply in the period in which the liability is settled or asset realised, based on tax rates
enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit or in relation to the initial recognition of goodwill.
56
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 8. INCOME TAX EXPENSE (CONTINUED)
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the deductible temporary differences or unused tax losses and tax offsets can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net basis.
Tax consolidation
Accent Group Limited (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated
group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the
'separate taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of the
tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities (or
assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary
in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that
the intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in
neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
International Tax Reform – Pillar Two Model Rules
In December 2021, the Organisation for Economic Co-operation and Development (OECD) released Global Anti-Base
Erosion (GLoBE) Model rules (“Pillar Two”), introducing new ‘top-up’ taxing mechanisms for multinational enterprises
(MNEs) that fall within the rules. MNEs will be liable to pay a top-up tax reflecting the difference between their GloBE
effective tax rate per jurisdiction and the 15% minimum rate.
The Group has assessed the potential exposure to Pillar Two income taxes and estimated that the weighted average
effective tax rates exceed 15% in all jurisdictions in which GloBE Rules have been enacted. The Pillar Two rules have yet
to come into effect as of 29 June 2025 in the foreign jurisdictions under which the Group operates and therefore the
Group has not undertaken any detailed effective tax rate (ETR) and top-up tax computations for jurisdictions other than
Australia. The Group does not operate in jurisdictions that have a headline corporate tax rate of less than 15%. A review of
the safe harbour provisions to the GloBE rules as applicable to the Group in the relevant jurisdictions will be undertaken
in the following financial year.
NOTE 9. TRADE AND OTHER RECEIVABLES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Trade receivables
30,346
34,784
Less: Allowance for expected credit losses
(593)
(554)
29,753
34,230
Other receivables
4,470
2,602
Trade and other receivables
34,223
36,832
Movement in the allowance for credit losses were as follows:
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Carrying value at beginning of year
(554)
(996)
Allowance for credit losses recognised
(39)
–
Unused amount reversed
–
442
Allowances for expected credit losses at year end
(593)
(554)
57
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 9. TRADE AND OTHER RECEIVABLES (CONTINUED)
Set out below is the information about the credit risk exposure on the Group’s trade receivables.
2025
Carrying
amount
$'000
Expected
credit
loss rate
%
Expected
credit loss
$'000
Current
15,692
0.6%
94
Under one month
9,942
0.8%
79
One to two months
2,630
0.6%
16
Two to three months
516
12.4%
64
Over three months
1,566
21.7%
340
30,346
593
2024
Carrying
amount
$'000
Expected
credit
loss rate
%
Expected
credit loss
$'000
Current
16,553
0.6%
99
Under one month
9,293
1.0%
93
One to two months
3,427
2.9%
99
Two to three months
1,165
2.8%
33
Over three months
4,346
5.3%
230
34,784
554
Recognition and measurement
Trade receivables
Trade receivables generally have terms of between 30 to 60 days. They are recognised at amortised cost less allowance
for expected credit losses (‘ECL’). Customers who wish to trade on credit terms are subject to extensive credit
verification procedures. Receivable balances are monitored on an ongoing basis and the ECL recognised is based on
management’s expectation of losses without regard to whether an impairment event exists.
Other receivables
Other receivables include rebates receivable from suppliers and fit-out contributions from landlords which are
considered fully recoverable and therefore no allowance has been made.
Impairment of trade receivables
Collectability and impairment of trade receivables is assessed on an ongoing basis at an individual customer level by
a centralised accounts receivable function. The Group has established a provision matrix that is based on average
write-offs as a proportion of average debt over a period of 12 months. The historical loss rates are adjusted for current
and forward-looking information where significant.
NOTE 10. INVENTORIES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Finished goods (at lower of cost and net realisable value)
224,003
193,974
Goods in transit
84,553
70,870
308,556
264,844
Recognition and measurement
Finished goods are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price
in the ordinary course of business less costs to sell. Cost comprises of the purchase price on a weighted average basis
and logistic expenses incurred in bringing the inventories to their present location and condition.
Determining the net realisable value of inventories relies on key assumptions that require the use of management
judgement. Management’s estimate of the net realisable value is based on historical finished goods sold below cost and
inventory write-off transactional data.
The provision for write-down of inventories to net realisable value amounted to $14,572,000 (30 June 2024:
$11,667,000) at 29 June 2025.
58
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 11. LEASE RECEIVABLES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Current
Lease receivables
5,837
7,459
Non-Current
Lease receivables
10,574
8,484
The Group sub-leases property leases to TAF franchises. The Group has classified these sub-leases as a finance lease,
because the sub-lease is substantially on the same terms as the head lease.
The following table sets out the maturity analysis of lease receivables, showing the undiscounted lease payments to be
received after the reporting date.
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Less than one year
6,652
8,059
One to five years
11,369
9,055
More than five years
–
–
Total undiscounted lease payments
18,021
17,114
Discounted using the Group’s incremental borrowing rate
(1,610)
(1,171)
Total lease receivables
16,411
15,943
of which are:
Current lease receivables
5,837
7,459
Non-current lease receivables
10,574
8,484
NOTE 12. DERIVATIVE FINANCIAL INSTRUMENTS
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Forward foreign exchange contracts – payable
5,611
315
Total derivative financial instruments payable – current
5,611
315
Foreign exchange forward contracts are held as hedging instruments against forecast purchases in USD. The notional
amount for the contracts held at 29 June 2025 totalled USD$ 123,219,000 (30 June 2024: USD$ 77,849,000). The
average rate of the forward contracts is 0.64 (2024: 0.66).
The net gain or loss recognised as other comprehensive income is equal to the change in fair value of the hedging
instruments. There is no ineffectiveness recognised in profit or loss.
Recognition and measurement
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign
exchange risk, including foreign exchange forward contracts and interest rate swaps. Derivatives are initially recognised
at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each
reporting date. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the
fair value is negative.
When a cash flow hedge is discontinued, any cumulative gain or loss on the hedging instrument recognised in other
comprehensive income is retained in equity until the forecast transaction occurs.
59
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 13. OTHER CURRENT ASSETS
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Prepayments
5,022
5,331
Other current assets
1,572
995
6,594
6,326
Prepayments represent general prepaid expenses, largely insurance premiums and license fees for the Group’s
eCommerce platforms.
NOTE 14. PROPERTY, PLANT AND EQUIPMENT
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Plant and equipment - at cost
434,183
410,607
Less: Accumulated depreciation and impairment
(331,467)
(296,384)
102,716
114,223
Assets under construction - at cost
8,749
7,180
111,465
121,403
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Plant and
equipment
$'000
Assets under
construction
$'000
Total
$'000
Balance at 2 July 2023
128,933
11,594
140,527
Additions
31,278
7,180
38,458
Transfer
11,594
(11,594)
–
Exchange differences
(32)
–
(32)
Impairment
(10,257)
–
(10,257)
Depreciation expense
(47,293)
–
(47,293)
Balance at 30 June 2024
114,223
7,180
121,403
Additions
33,472
8,749
42,221
Transfer
7,180
(7,180)
–
Disposals
(1,031)
–
(1,031)
Exchange differences
88
–
88
Impairment
(4,417)
–
(4,417)
Depreciation expense
(46,799)
–
(46,799)
Balance at 29 June 2025
102,716
8,749
111,465
Recognition and measurement
The carrying value of property, plant and equipment is measured as the cost of the asset, less accumulated depreciation,
and impairment.
Depreciation and amortisation
Items of property, plant and equipment are depreciated on a straight-line basis over the expected useful lives. Most of
the property, plant and equipment represents leasehold improvements which are amortised over the period of the lease.
As at 29 June 2025, the average lease term is 5 years. Assets under construction are not depreciated.
60
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 14. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Derecognition
An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is
expected to bring no future economic benefits. Any gain or loss between the carrying amount and the disposal proceeds
are included in the income statement in the period the item is derecognised.
Impairment
Refer to Note 15 for details on impairment testing.
NOTE 15. RIGHT-OF-USE ASSETS
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Buildings - right-of-use1
901,723
751,325
Less: Accumulated depreciation and impairment
(615,790)
(485,912)
285,933
265,413
1
Additions to right-of-use assets of $74,519,000 and modifications of $85,105,000 total to $159,624,000 for the year ended 29 June 2025 (30 June
2024: additions of $93,904,000).
Recognition and measurement
A right-of-use asset is recognised at the commencement date of a lease. The Group leases land and buildings for its
offices and retail stores under agreements with an average term of 5 years. The right-of-use asset is measured initially at
cost based on the value of the associated lease liability, adjusted for, as applicable, any lease payments made at or before
the commencement date net of any lease incentives received and any initial direct costs incurred.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease. Right-of-use assets
are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases
with terms of 12 months or less and leases of low-value assets. Short term lease payments of $2,369,000 (30 June
2024: $11,722,000) were expensed to profit or loss as incurred within occupancy expense. The remaining contractual
commitment for short term leases is $115,000 (30 June 2024: $414,000).
Lease terms include periods covered by extension options where the Group is reasonably certain to exercise that option.
This includes holdover periods where the Group continues to occupy leased properties post expiry under month-to-
month agreements while negotiations are in progress for renewal.
During the financial year ended 29 June 2025, the Group changed its accounting policy to account for holdover leases
in accordance with AASB 16 Leases resulting in a decrease in occupancy expenses and an increase in depreciation
for right-of-use assets as compared to the prior financial year ended 30 June 2024. No change was made to the
comparative period.
Impairment of property, plant and equipment and right-of-use assets
For impairment testing purposes the Group has determined that each store is a separate Cash Generating Unit (CGU).
Each CGU is tested for impairment at the balance sheet date if any indicators of impairment have been identified.
Based on the assessments below, a further $3,112,000 net impairment charge was recognised during the financial
year ended 29 June 2025 (30 June 2024: $14,134,000 impairment expense), comprising of $4,417,000 impairment
charge attributable to property, plant and equipment (PPE) offset by $1,305,000 impairment reversal attributable to
right-of-use assets.
Glue stores
During the prior financial year ended 30 June 2024, the Group made a decision to exit 17 underperforming Glue stores
where required returns are not being achieved and a total of $14,116,000 impairment charge was recognised. These 17
Glue stores are tested for impairment based on their respective fair values less costs of disposal (FVLCD) (Level 3 fair
values in the fair value hierarchy). The FVLCD was determined based on the assumption that PPE attributable to each
store will not be reused within the business and further assumptions around the exit time frame of each store and the
potential lease surrender payments driving the related right-of-use asset impairment.
During the current financial year ended 29 June 2025, 14 Glue stores have either closed or transitioned to other brands.
Based on the assessment, no further impairment charge is required for the remaining Glue stores as at 29 June 2025.
61
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 15. RIGHT-OF-USE ASSETS (CONTINUED)
All other stores
The Group performed an indicator assessment for each store based on store profitability at the EBITDA level. Other than Vans
stores, there were no indicators of impairment identified that would require an incremental impairment charge to be recognised
for the year ended 29 June 2025. The Group identified impairment indicators in relation to a number of Vans stores.
The Group performed an impairment test for all stores (including Glue stores that continue trading) as at 29 June 2025
based on value in use for each store (CGU). The recoverable amount was determined based on the Group’s latest trading
performance at the time of assessment. Cash flows in year one represent the last twelve months of trading for all stores
other than Glue stores. Cash flows in year one for Glue stores incorporate a 5% trading risk adjustment.
Cash flows beyond year one represent the Group’s estimated growth of 2% per annum. Cash flows were discounted to
present value using a mid-point after-tax discount rate of 10.51% (2024: 10.47%).
Based on the assessment, the Group has recognised an incremental impairment charge of $3,812,000 for Vans stores as
at 29 June 2025 and utilised $700,000 of prior year provision against asset write-offs for other stores that have closed
during the financial year.
The cash flows used within the impairment models are based on assumptions which are sources of estimation
uncertainty and movements in these assumptions could lead to further impairment. The key assumptions in the value
in use calculations are growth rates of sales, gross profit margins and the after-tax discount rate.
Management has performed sensitivity analysis using reasonably possible changes in the key assumptions across the
store portfolio. These reasonably possible changes do not lead to a significant increase in the impairment charge.
NOTE 16. INTANGIBLES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Goodwill - at cost
341,112
323,628
Brands and trademarks - at cost
44,825
44,825
Less: Accumulated impairment
–
(9,714)
44,825
35,111
Licence fees - The Athlete's Foot - at cost
7,832
7,832
Less: Accumulated amortisation
(488)
(456)
7,344
7,376
Distribution rights - at cost
16,800
16,800
Less: Accumulated amortisation
(16,800)
(16,800)
–
–
Re-acquired rights
4,484
2,991
Less: Accumulated amortisation
(2,853)
(2,009)
1,631
982
Software
41,299
37,716
Less: Accumulated amortisation
(28,104)
(22,251)
13,195
15,465
Assets under construction
8,175
1,452
Intangibles
416,282
384,014
62
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 16. INTANGIBLES (CONTINUED)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Goodwill
$'000
Brands and
trademarks
$'000
Licence
fees
$'000
Distribution
rights
$'000
Re-acquired
rights
$'000
Software
$'000
Assets
under
construction
$'000
Total
$'000
Balance at 2 July 2023
322,568
35,111
7,408
–
1,262
14,106
1,736
382,191
Additions
–
–
–
–
–
5,531
1,452
6,983
Additions through
business combinations
(Note 34)
1,065
–
–
–
444
–
–
1,509
Transfer
–
–
–
–
–
1,736
(1,736)
–
Exchange differences
(5)
–
–
–
–
2
–
(3)
Amortisation expense
–
–
(32)
–
(724)
(5,910)
–
(6,666)
Balance at 30 June
2024
323,628
35,111
7,376
–
982
15,465
1,452
384,014
Additions
–
–
–
–
–
3,179
8,175
11,354
Additions through
business combinations
(Note 34)
17,469
–
–
–
1,493
–
–
18,962
Transfer
–
–
–
–
–
1,452
(1,452)
–
Other(1)
–
9,714
–
–
–
–
–
9,714
Exchange differences
15
–
–
–
–
–
–
15
Write off of assets
–
–
–
–
–
(529)
–
(529)
Amortisation expense
–
–
(32)
–
(844)
(6,372)
–
(7,248)
Balance at 29 June
2025
341,112
44,825
7,344
–
1,631
13,195
8,175
416,282
(1) Impairment reversal of $9,714,000 for the Hype DC brand.
Recognition and measurement
Goodwill
Goodwill acquired in a business combination is initially measured at cost. Cost is measured as the cost of the business
combination minus the net fair value of the acquired and identifiable assets, liabilities and contingent liabilities. Following
initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Brands and trademarks
Brands and trademarks are recognised at cost in a business combination. Brands and trademarks have indefinite useful
lives. This assessment reflects management's intention to continue to utilise these intangible assets in the foreseeable
future. Each period, the useful life of these assets is reviewed to determine whether events and circumstances continue
to support an indefinite useful life assessment for the assets.
Computer software and Software-as-a-Service (SaaS) arrangements
SaaS arrangements are arrangements in which the Group does not currently control the underlying software used in the
arrangement. Costs incurred to configure or customise SaaS arrangements that result in the creation of a resource which
is identifiable, and where the Group has the power to obtain the future economic benefits flowing from the underlying
resource and to restrict the access of others to those benefits, such costs are recognised as a separate intangible
software asset and amortised over the useful life of the software on a straight-line basis. The amortisation is reviewed at
least at the end of each reporting period and any changes are treated as changes in accounting estimates.
Useful life
Software
Finite (up to 4 years)
63
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 16. INTANGIBLES (CONTINUED)
Other intangible assets
Intangible assets with finite lives are amortised on a straight-line basis over their useful lives and tested for impairment
whenever there is an indication that they may be impaired. The amortisation period and method is reviewed at each
financial year-end. A summary of the useful lives of other intangible assets is as follows:
Useful life
License fees
Finite (up to 249 years)
Distribution rights
Finite (up to 7 years)
Re-acquired rights
Finite (up to 8 years)
Impairment testing of goodwill
Goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it might
be impaired. For Goodwill impairment testing purpose, the Cash Generating Unit (“CGU”) is determined to be the Retail
business representing the Retail operating segment.
The impairment test as at 29 June 2025 was carried out based on value in use calculations for the CGU. The recoverable
amount was determined based on the Retail operating segment’s actual FY25 performance which is the basis for year
one cash flows. The cash flows include ongoing capital expenditure required to maintain the store network but exclude
any growth capital initiatives not committed. The cash flows beyond year one have been extrapolated using a steady state
2.0% long term growth rate (2024: 2.0%). It is assumed that there will be no material change to existing key distributor
agreements. Cash flows were discounted to present value using a mid-point after-tax discount rate of 10.8% (2024: 12.3%).
Management has performed sensitivity analysis using reasonably possible changes in the key assumptions. These
reasonably possible changes do not lead to an impairment charge. The Group has concluded that no impairment is required
based on expected performance and current market and economic conditions.
There is no impairment indication identified for the remainder of the Group that does not form part of the CGU and no
further asset impairment test performed.
Brand names and trademarks
The Group recognises the following brands and trademarks as indefinite life intangible assets:
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Carrying amount of brand names and trademarks:
The Athlete's Foot
3,466
3,466
Platypus
11,100
11,100
Hype DC
30,259
20,545
Brands and trademarks
44,825
35,111
Impairment testing of brands and trademarks
Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment
or more frequently if events or changes in circumstances indicate that they might be impaired.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount was determined independently using the Relief from Royalty (‘RFR’) valuation method. The
calculations reflect the last twelve months of revenue in year one. Revenue beyond year one represents the Group’s
estimated growth of 2% per annum. The calculations require the use of assumptions, including estimated royalty rates,
tax rate and estimated discount rates.
The royalty rates used in the valuation model were brand specific and based on rates observed in the market. The royalty
rates across all brands ranged between 3.5% to 5.25%. The TAF brands royalty rate was in line with current franchise
agreements. The tax rate applied in the valuation model is based on the corporate tax rate in Australia of 30.0% and the
after-tax discount rate used is 12.9% (2024: 14.6%).
There are observable indications that Hype DC's brand value has increased significantly during the year, following
sustainable favourable business performance in recent financial years. Based on the impairment test outcome, the
Group has recognised an impairment reversal for Hype brand of $9,714,000 as at 29 June 2025.
Management has performed sensitivity analysis using reasonably possible changes in the key assumptions. These
reasonably possible changes do not lead to an impairment charge. The Group has concluded that no impairment is
required based on expected performance and current market and economic conditions.
64
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 17. NET DEFERRED TAX
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Net deferred tax comprises temporary differences attributable to:
Allowance for expected credit losses
425
165
Provision for shrinkage and stock obsolescence
4,348
3,440
Share-based payments
–
(2,645)
Provision for employee entitlements
6,732
5,914
Other provisions and accrued expenses
1,495
4,570
Difference in accounting and tax depreciation
(8,933)
(17,826)
Supplier contributions
–
847
Right-of-use asset
(88,899)
(73,045)
Lease liability
113,752
104,049
Trademarks, brand names and distribution rights
(8,334)
(10,734)
Other
4,184
2,189
Amounts recognised directly to other comprehensive income
Tax effect of hedges in reserves
1,412
(45)
Tax effect of share-based payments
–
5,285
Net deferred tax asset
26,182
22,164
NOTE 18. TRADE AND OTHER PAYABLES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Trade payables
121,495
71,325
Goods and services tax payable
5,900
7,645
Accrued expenses
37,422
40,222
Other payables
36,056
32,095
200,873
151,287
Trade payables and accruals represent liabilities for goods and services provided to the Group prior to the end of
financial year which are unpaid. Other payables represent goods receipted that have not been invoiced as at 29 June
2025. Trade and other payables are stated at amortised cost. The amounts are unsecured and are usually settled within
30 to 60 days of recognition.
65
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 19. DEFERRED REVENUE
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Current
Gift cards
7,115
5,974
Other deferred revenue
4,001
5,619
11,116
11,593
Non-Current
Other deferred revenue
1,578
1,346
12,694
12,939
Deferred revenue relates to unredeemed gift cards, loyalty program liabilities, and unused supplier contributions for
fixtures, fittings and point of purchase. Revenue is recognised when the gift cards and loyalty points are redeemed or
expire. The unused supplier contributions will be utilised for future store openings and refurbishments.
NOTE 20. PROVISIONS
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Current
Employee benefits
17,481
17,456
Other provisions
3,513
3,206
20,994
20,662
Non-Current
Employee benefits
2,081
1,736
23,075
22,398
Recognition and measurement
Employee benefits
Liabilities for annual leave, bonuses and other employee benefits expected to be settled wholly within 12 months of the
reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Employee benefits not expected to be settled within 12 months of the reporting date are measured at the present
value of expected future payments to be made in respect of services provided by employees up to the reporting date.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of
service. Expected future payments are discounted using market yields at the reporting date on high quality corporate
bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it
is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the reporting date.
66
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. BORROWINGS
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Current
Secured
Working capital facility
–
11,000
Capitalised debt transaction costs
–
(341)
–
10,659
Non-Current
Secured
Bank loans
140,000
140,000
Capitalised debt transaction costs
(406)
(406)
139,594
139,594
Borrowings
139,594
150,253
Movements in borrowings
Movements in current borrowings during the current financial year is set out below:
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Carrying amount at start of the year
150,253
149,304
Repayments
(11,000)
–
Additional loans
–
1,000
Capitalised debt transaction costs
341
(51)
Carrying amount at end of the year
139,594
150,253
The outstanding financing facilities have a combination of three and five-year tenure, expiring between December 2026
and December 2027. The weighted average interest rate on these financing facilities is 5.20% (FY24: 5.86%).
Recognition and measurement
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting date and intends to do so.
The Group monitors compliance with its financial covenants on a monthly basis and reports compliance on a monthly
basis to the banks. The Group has complied with all such requirements.
Assets pledged as security
The senior bank debt is secured by cross-guarantees and all assets of Accent Group Limited and each of its
wholly-owned subsidiaries. Total secured assets amounted to $942,416,000 at 29 June 2025 (30 June 2024:
$858,306,000).
67
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 21. BORROWINGS (CONTINUED)
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Total facilities
Bank overdraft
14,300
12,000
Bank loans
140,000
140,000
Working capital facility
80,772
84,101
Bank guarantee and letters of credit
34,928
31,799
270,000
267,900
Used at the reporting date
Bank loans
140,000
140,000
Working capital facility
–
11,000
Bank guarantee and letters of credit
31,816
27,005
171,816
178,005
Unused at the reporting date
Bank overdraft
14,300
12,000
Working capital facility
80,772
73,101
Bank guarantee and letters of credit
3,112
4,794
98,184
89,895
NOTE 22. LEASE LIABILITIES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Current
Lease liability
131,190
138,039
Non-current
Lease liability
264,876
253,911
Total lease liabilities
396,066
391,950
Less than one year
146,481
146,370
One to five years
283,184
271,638
More than five years
5,327
5,339
Total undiscounted lease liabilities
434,992
423,347
Recognition and measurement
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the Group's incremental borrowing
rate. Leases are entered into for varying terms and rent reviews are based on CPI increases or fixed increases. Variable
lease payments are expensed in the period in which they are incurred.
68
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 22. LEASE LIABILITIES (CONTINUED)
The carrying amount of a lease liability is remeasured if there is a change in the lease payments arising from a change
in an index or a rate used and a change in lease term. Most of the Group’s leases do not contain renewal or extension
options. When a lease liability is remeasured, an adjustment is made to the corresponding right-of-use asset, or to profit
or loss if the carrying amount of the right-of-use asset is fully written down.
NOTE 23. EQUITY - ISSUED CAPITAL
Consolidated
29 Jun 2025
Shares
30 Jun 2024
Shares
29 Jun 2025
$'000
30 Jun 2024
$'000
Ordinary shares - fully paid
601,185,674
563,053,196
451,377
390,926
Ordinary shares
Ordinary shares are classified as equity and entitle the holder to participate in dividends and the proceeds on the
winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary
shares have no par value and the Company does not have a limited amount of authorised capital.
Share buy-back
There is no current on-market share buy-back.
Movements in ordinary share capital
Details
Date
Shares
Issue price
$'000
Balance
2 July 2023
552,459,958
390,926
Shares issued during the period
8 September 2023
10,593,238
–
–
Balance
30 June 2024
563,053,196
390,926
Shares issued during the period(i)
2 September 2024
2,945,783
–
–
Shares issued during the period(ii)
13 May 2025
35,186,695
$1.718
60,451
Balance
29 June 2025
601,185,674
451,377
(i) A total of 2,945,783 (2024: 10,593,238) ordinary shares were issued in relation to the performance rights plan.
(ii) The Group issued 35,186,695 of shares to Frasers Group plc via placement, as part of a long-term strategic relationship with Frasers Group plc as
announced to the market on 15 April 2025.
NOTE 24. EQUITY - RESERVES
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Foreign currency translation reserve
1,461
1,141
Hedging reserve - cash flow hedges
(2,729)
104
Share-based payments reserve
29,888
32,601
28,620
33,846
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
Hedging reserve - cash flow hedges
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash
flows are recognised in other comprehensive income with the remaining change in fair value recognised in the hedging
reserve. Any ineffective portion is recognised immediately in the statement of profit or loss and other comprehensive
income.
Share-based payments reserve
The share-based payments reserve is used to recognise the value of equity-settled share-based payments provided to
employees, including key management personnel, as part of their remuneration.
69
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 25. EQUITY - DIVIDENDS
Dividends
Dividends paid during the financial year were as follows:
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Final dividend for the year ended 30 June 2024 of 4.50 cents (2023: 5.50 cents) per
ordinary share
25,470
30,968
Interim dividend for the year ended 29 June 2025 of 5.50 cents (2024: 8.50 cents) per
ordinary share
31,130
47,859
56,600
78,827
In respect of the financial year ended 29 June 2025, the directors recommended the payment of a final fully franked
dividend of 1.50 cents per share to be paid on 25 September 2025 to the registered holders of fully paid ordinary shares as
at 28 August 2025.
Franking credits
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Franking credits available for subsequent financial years based on a tax rate of 30%
9,521
12,028
New Zealand imputation credits available to New Zealand residential shareholders amount to NZ$1,950,000 (30 June
2024: NZ$3,406,000).
NOTE 26. FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
and interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance
of the Group. The Group uses derivative financial instruments such as forward foreign exchange contracts to hedge
foreign currency exposures and interest rate swaps to hedge interest rate exposures. Derivatives are exclusively used for
hedging purposes, i.e. not as trading or other speculative instruments. The Group uses different methods to measure
different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign
exchange and other price risks and ageing analysis for credit risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of
Directors ('the Board'). These policies include identification and analysis of the risk exposure of the Group and
appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the
Group's operating units. Finance reports to the Board on a periodic basis.
Market risk
Foreign currency risk
The Group has transactional foreign currency exposures arising from the purchase of inventory denominated in US
dollars. To minimise the impact of changes in the Australian Dollar / US Dollar exchange rate on profit and loss, the
Group enters into forward exchange contracts in accordance with its Board-approved foreign exchange hedging policy.
The Group enters into hedge relationships where the critical terms of the hedging instrument match exactly with the
terms of the hedged item. The Group therefore performs a qualitative assessment of effectiveness based on critical
terms match. In hedges of foreign currency purchases, ineffectiveness may arise if the timing of the forecast transaction
changes from what was originally estimated, or if there are changes in the credit risk of Australia or the derivative
counterparty.
70
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
The Group's exposure to foreign currency risk as at the end of the reporting period, expressed in Australian dollars,
is shown below:
29 Jun 2025
30 Jun 2024
Consolidated
US dollar
transactional
exposure
$'000
Australian
dollar
equivalent
$'000
US dollar
transactional
exposure
$'000
Australian
dollar
equivalent
$'000
Forward contracts
123,219
193,512
77,849
117,366
Foreign currency trade payables
45,221
69,113
18,814
28,403
Transactional foreign exchange risk
168,440
262,625
96,663
145,769
The sensitivity of the Group's transactional foreign currency risk exposure is estimated by assessing the impact that a
10% increase and 10% decrease in the Australian Dollar/US Dollar exchange rate would have on profit and equity of the
Group at the reporting date.
29 Jun 2025
30 Jun 2024
Movement
in Australian
dollar/
US dollar
exchange rate
%
Increase/
(decrease) in
profit or loss
$'000
Increase/
(decrease)
in other
comprehensive
income
$'000
Movement
in Australian
dollar/
US dollar
exchange rate
%
Increase/
(decrease) in
profit or loss
$'000
Increase/
(decrease)
in other
comprehensive
income
$'000
Forward Contracts
10%
–
(15,617)
10%
–
(7,508)
(10%)
–
9,550
(10%)
–
8,452
Trade Payables
10%
663
5,620
10%
387
2,195
(10%)
(810)
(6,869)
(10%)
(473)
(2,683)
The maturity, settlement amounts and the average contractual exchange rates of the Group's outstanding forward
foreign exchange contracts at the reporting date were as follows:
Sell Australian dollars
Average exchange rates
29 Jun 2025
$'000
30 Jun 2024
$'000
29 Jun 2025
30 Jun 2024
Buy US dollars
Maturity:
0 - 3 months
86,625
42,336
0.6374
0.6578
3 - 6 months
71,756
63,074
0.6341
0.6659
6 - 12 months
35,130
11,956
0.6405
0.6664
> 12 months
–
–
–
–
Translational Foreign Currency Risk
The Group includes certain subsidiaries whose functional currencies are different to the Group’s presentation currency
of Australian Dollars. As stated in Note 2, on consolidation the assets and liabilities of these entities are translated into
Australian dollars at exchange rates prevailing on the balance date. The income and expenses of these entities are
translated at the average exchange rates for the year. Exchange differences arising are classified as equity and are
transferred to a foreign exchange translation reserve. The main operating entities outside of Australia are based in
New Zealand. The Group’s future reported profits could therefore be impacted by changes in rates of exchange between
the Australian Dollar and the New Zealand Dollar.
29 Jun 2025
30 Jun 2024
NZ dollar
translational
exposure
$'000
Australian
dollar
equivalent
$'000
NZ dollar
translational
exposure
$'000
Australian
dollar
equivalent
$'000
New Zealand dollar net assets
8,127
7,532
8,344
7,636
71
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
The sensitivity of the Group's translational foreign currency risk exposure is estimated by assessing the impact that a
10% increase and 10% decrease in the Australian Dollar/NZ Dollar exchange rate would have on profit and equity of the
Group at the reporting date.
29 Jun 2025
30 Jun 2024
Movement
in Australian
dollar/
NZ dollar
exchange rate
%
Increase/
(decrease)
in other
comprehensive
income
$'000
Movement
in Australian
dollar/
NZ dollar
exchange rate
%
Increase/
(decrease)
in other
comprehensive
income
$'000
New Zealand dollar net assets
10%
(685)
10%
(694)
(10%)
837
(10%)
848
Price risk
The Group is not exposed to any significant price risk.
Interest rate risk
The Group's main interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the
Group to interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk.
As at the reporting date, the Group had the following cash and cash equivalents and variable rate borrowings
outstanding:
29 Jun 2025
30 Jun 2024
Consolidated
Weighted
average
interest rate
%
Balance
$'000
Weighted
average
interest rate
%
Balance
$'000
Bank loans
5.20%
(140,000)
5.87%
(140,000)
Working capital facility
–
–
5.80%
(11,000)
Net exposure to cash flow interest rate risk
(140,000)
(151,000)
Sensitivity impact of interest rate changes has not been shown as a 0.5% change in interest rates would have an
immaterial profit or loss impact based on the net exposure to cash flow interest rate risk at balance date.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount,
net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the
financial statements.
Credit risk is managed on a group basis. Risk control assesses the credit quality of wholesale customers, taking into
account its financial position, past experience and other factors. Individual risk limits are set based on internal or external
ratings in accordance with limits set by the Group policy. The compliance with credit limits by wholesale customers is
regularly monitored by management.
Sales to retail customers are required to be settled in cash or using major credit cards, mitigating credit risk. There are
no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors
and/or regions.
72
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
Financial covenants are provided to its lenders by the Group with respect to leverage, gearing and fixed charges
coverage. The Group has complied with the financial covenants of its borrowing facilities during the 2025 and 2024
financial years.
There are no indications that Accent Group Limited would have difficulties complying with the covenants when they will
be next tested as at the 28 December 2025 interim reporting date.
All measurements are monitored month-to-month and reported to the banks on a semi-annual basis.
Financing arrangements
Unused borrowing facilities at the reporting date:
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Bank overdraft
14,300
12,000
Working capital facility
80,772
73,101
Bank guarantee and letters of credit
3,112
4,794
98,184
89,895
Remaining contractual maturities
The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid, and therefore these totals may differ from their carrying amount in the
statement of financial position.
Consolidated - 29 Jun 2025
Weighted
average
interest rate
%
1 year or less
$'000
Between
1 and 2 years
$'000
Between
2 and 5 years
$'000
Over 5 years
$'000
Remaining
contractual
maturities
$'000
Non-derivatives
Non-interest bearing
Trade payables
121,495
–
–
–
121,495
Other payables
36,056
–
–
–
36,056
Lease liabilities
146,481
116,261
166,923
5,327
434,992
Interest-bearing - variable
Term loans
5.20%
7,285
143,373
–
–
150,658
Working capital facility
–
–
–
–
–
–
Total non-derivatives
311,317
259,634
166,923
5,327
743,201
Derivatives
Forward foreign exchange
contracts net settled
5,611
–
–
–
5,611
Total derivatives
5,611
–
–
–
5,611
73
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
Consolidated - 30 Jun 2024
Weighted
average
interest rate
%
1 year
or less
$'000
Between
1 and 2 years
$'000
Between
2 and 5 years
$'000
Over
5 years
$'000
Remaining
contractual
maturities
$'000
Non-derivatives
Non-interest bearing
Trade payables
71,325
–
–
–
71,325
Other payables
32,095
–
–
–
32,095
Lease liabilities
146,370
113,119
158,519
5,339
423,347
Interest-bearing - variable
Term loans
5.87%
8,214
8,214
143,466
–
159,894
Working capital facility
5.80%
11,009
–
–
–
11,009
Total non-derivatives
269,013
121,333
301,985
5,339
697,670
Derivatives
Forward foreign exchange
contracts net settled
315
–
–
–
315
Total derivatives
315
–
–
–
315
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Capital risk management
The Group manages its capital to ensure that all the entities within the Group are able to continue as going concerns
while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of cash and cash equivalents, trade and other receivables, inventories,
intangibles and net working capital. The equity attributable to equity holders of the parent entity comprises issued
capital, reserves and accumulated losses.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting the Group’s
capital structure in response to changes in these risks and in the market. These responses include the management of
debt levels, distributions to shareholders and share issues.
None of the Group entities are subject to externally-imposed capital requirements.
NOTE 27. FAIR VALUE MEASUREMENT
The only financial assets or financial liabilities carried at fair value are interest rate swaps and foreign currency forward
contracts. All these instruments are Level 2 financial instruments because, unlike Level 1 financial instruments, their
measurement is derived from inputs other than quoted prices that are observable for the assets or liabilities, either
directly or indirectly.
Valuation techniques for fair value measurements
The fair values are determined using the valuation techniques below. The fair value was obtained from third party valuations.
Forward foreign exchange contracts
The fair value was obtained from third party valuations derived from discounted cash flow forecasts of forward exchange
rates at the end of the reporting period and contract exchange rates.
Interest rate swap contracts
Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting
period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties.
There were no transfers between levels during the year.
The carrying amount of other financial assets and financial liabilities recorded in the financial statements approximate
their fair values.
74
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 28. KEY MANAGEMENT PERSONNEL COMPENSATION
The aggregate compensation made to directors and other members of key management personnel of the Group is set
out below:
Consolidated
29 Jun 2025
$
30 Jun 2024
$
Short-term employee benefits
3,743,738
3,256,568
Post-employment benefits
106,115
108,287
Long-term benefits
218,111
276,664
Share-based payments
(875,941)
(744,522)
3,192,023
2,896,997
NOTE 29. REMUNERATION OF AUDITORS
During the financial year the following fees were paid or payable for services provided by PricewaterhouseCoopers, the
auditor of the Group:
Consolidated
29 Jun 2025
$
30 Jun 2024
$
Audit services - PricewaterhouseCoopers
Audit or review of the financial statements
774,330
768,790
Other services - PricewaterhouseCoopers
Other consulting services
–
–
774,330
768,790
NOTE 30. CONTINGENT LIABILITIES
The Group has bank guarantees outstanding as at 29 June 2025 of $2,318,000 (30 June 2024: $3,937,000). The Group
also has open letters of credit of $29,498,000 (30 June 2024: $23,068,000). These guarantees and letters of credit are
in favour of international stock suppliers and landlords where parent guarantees cannot be negotiated.
As announced to the market on 15 April 2025, the Group has entered a long-term strategic relationship with Frasers
Group plc, a global retailer of sports, premium and luxury brands, based in London and listed on the London Stock
Exchange (FRAS.L) (Frasers), to launch and operate the Sports Direct retail business in Australia and New Zealand
(ANZ). As part of the retail agreement with Frasers, the Group will be required to pay certain prescribed royalties to
Frasers based on sales volumes and subject to various conditions which may amount to a minimum of approximately
$100,000,000 over the initial 25-year term of the agreement.
NOTE 31. COMMITMENTS
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Capital commitments
Committed at the reporting date but not recognised as liabilities, payable:
Property, plant and equipment
8,054
14,697
The commitment amounts disclosed above represent the maximum amounts that the Group is obliged to pay and
exclude landlord contributions to store fit-out costs.
75
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 32. RELATED PARTY TRANSACTIONS
Parent entity
Accent Group Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 35.
Key management personnel
Disclosures relating to key management personnel are set out in Note 28 and the remuneration report included in the
directors' report.
Entities associated with key management personnel
Rivan Pty Limited, a shareholder, is a company associated with David Gordon.
2 Como Pty Ltd, a shareholder, is a company associated with Daniel Agostinelli.
Cannes Investment Pty Ltd, a shareholder, is a company associated with Daniel Agostinelli.
HIT Group Limited, a shareholder, is a company associated with Michael Hapgood.
BT Portfolio Services Ltd, a shareholder, is a company associated with Donna Player.
Bodyelectric Pty. Limited, a shareholder, is a company associated with Lawrence Myers.
Exodus Enterprises Pty Limited, a shareholder, is a company associated with Lawrence Myers.
Musician Pty Ltd, a shareholder, is a company associated with Matthew Durbin.
Transactions with related parties
Key management personnel have family members employed by the Group on an arm’s length basis. There were no other
related party transactions during the year.
Loans to/from and outstanding balances with related parties
There were no loans to/from and no balances receivable from/owing to related parties outstanding at the reporting date.
NOTE 33. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Parent
29 Jun 2025
$'000
30 Jun 2024
$'000
Profit after income tax
70,211
93,452
Other comprehensive income for the year, net of tax
–
–
Total comprehensive income
70,211
93,452
76
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
Statement of financial position
Parent
29 Jun 2025
$'000
30 Jun 2024
$'000
Total current assets
274,405
202,738
Total non-current assets
375,319
375,096
Total assets
649,724
577,834
Total current liabilities
9,807
10,297
Total non-current liabilities
148,915
147,885
Total liabilities
158,722
158,182
Net assets
491,002
419,652
Equity
Issued capital
451,377
390,926
Share-based payments reserve
29,888
32,600
Retained earnings/(Accumulated losses)
9,737
(3,874)
Total equity
491,002
419,652
The financial information for the parent entity has been prepared on the same basis as the consolidated financial
statements, except as set out below.
–
Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
–
Dividends received from subsidiaries are recognised in the parent entity’s profit or loss.
NOTE 34. BUSINESS COMBINATIONS
29 June 2025
During the year to 29 June 2025, the Group completed the acquisition of 15 TAF stores across various dates and the
MySale online business on 13 May 2025. The total consideration transferred for these acquisitions was $32,544,000.
Goodwill of $17,469,000 was recognised on acquisition.
Details of the business combinations are as follows:
TAF
Provisional
Fair Value
$'000
MySale
Provisional
Fair Value
$'000
Total
$'000
Cash and cash equivalents
4
–
4
Inventories
4,010
3,737
7,747
Other current assets
12
–
12
Right-of-use assets
12
–
12
Net deferred tax assets
5,887
1,475
7,362
Provisions
(135)
(292)
(427)
Deferred revenue
(511)
(233)
(744)
Lease liability
(12)
–
(12)
Other current liabilities
–
(372)
(372)
Net assets acquired
9,267
4,315
13,582
Reacquired rights
1,493
–
1,493
Goodwill
10,664
6,805
17,469
Acquisition-date fair value of the total consideration transferred
21,424
11,120
32,544
Representing:
Cash paid or payable to vendor
21,483
11,120
32,603
Outstanding debt
(59)
–
(59)
21,424
11,120
32,544
NOTE 33. PARENT ENTITY INFORMATION (CONTINUED)
77
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 34. BUSINESS COMBINATIONS (CONTINUED)
Details of the cash flow movement relating to the acquisition are as follows:
TAF
Provisional
Fair Value
$'000
MySale
Provisional
Fair Value
$'000
Total
$'000
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
21,424
11,120
32,544
Less: cash and cash equivalents
(4)
–
(4)
Less: outstanding debts / loans forgiven
59
–
59
Net cash used
21,479
11,120
32,599
The fair value of assets acquired, liabilities and contingent liabilities assumed are initially estimated by the Group taking
into consideration all available information at the reporting date. Fair value adjustments on the finalisation of the
business combination accounting is retrospective, where applicable, to the period the combination occurred and may
have an impact on the assets and liabilities, depreciation and amortisation reported.
Revenue and profit before tax contributed by the 15 TAF stores (excluding support overheads and associated integration
costs) from the acquisition dates to 29 June 2025 were $15,015,000 and $3,523,000 respectively.
If the acquisition of the 15 TAF stores had occurred on 1 July 2024, consolidated pro-forma revenue and profit before tax
for the year ended 29 June 2025 is estimated to have been $1,503,784,000 and $88,453,000 respectively.
30 June 2024
During the year to 30 June 2024, the Group completed the acquisition of 3 TAF stores. The total consideration
transferred for these acquisitions was $2,206,000. Goodwill of $1,065,000 was recognised on acquisition. The 3 TAF
stores contributed revenue of $1,832,000 from the acquisition dates to 30 June 2024.
Details of the assets and liabilities acquired are as follows:
Fair value
$'000
Cash and cash equivalents
1
Inventories
500
Right-of-use assets
501
Net deferred tax assets
214
Provisions
(18)
Lease liability
(501)
Net assets acquired
697
Reacquired rights
444
Goodwill
1,065
Acquisition-date fair value of the total consideration transferred
2,206
Representing:
Cash paid or payable to vendor
2,212
Outstanding debts
(6)
2,206
Details of the cash flow movement relating to the acquisition are as follows:
Fair value
$'000
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
2,206
Less: cash and cash equivalents
(1)
Less: outstanding debts / loans forgiven
6
Net cash used
2,211
78
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 35. INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in Note 2:
Ownership interest
Name
Principal place of business/Country of incorporation
29 Jun 2025
%
30 Jun 2024
%
The Athlete's Foot Australia Pty Ltd
Australia
100%
100%
TAF Construction Pty Ltd(g)
Australia
0%
100%
RCG Brands Pty Ltd
Australia
100%
100%
Accent OzSale Pty Ltd(e)
Australia
100%
100%
TAF eStore Pty Ltd
Australia
100%
100%
TAF Partnership Stores Pty Ltd(g)
Australia
0%
100%
TAF Rockhampton Pty Ltd(g)
Australia
0%
100%
TAF Eastland Pty Ltd(g)
Australia
0%
100%
TAF The Glen Pty Ltd(g)
Australia
0%
100%
TAF Hornsby Pty Ltd(g)
Australia
0%
100%
TAF Hobart Pty Ltd(g)
Australia
0%
100%
TAF Booragoon Pty Ltd(g)
Australia
0%
100%
Accent Group Ltd(a)
New Zealand(d)
100%
100%
Platypus Shoes Ltd(b)
New Zealand(d)
100%
100%
Accent Footwear Ltd(b)
New Zealand(d)
100%
100%
Hype DC Ltd(b)
New Zealand(d)
100%
100%
TAF New Zealand Ltd(d)
New Zealand(d)
100%
100%
Accent Brands Pty Ltd(a)
Australia
100%
100%
Platypus Shoes (Australia) Pty Ltd(a)
Australia
100%
100%
42K Pty Ltd(c)
Australia
100%
100%
Accent Store Development Pty Ltd
Australia
100%
100%
RCG Accent Group Holdings Pty Ltd
Australia
100%
100%
Hype DC Pty Ltd
Australia
100%
100%
Subtype Pty Ltd
Australia
100%
100%
Sports Direct (Australia) Pty Ltd(f)
Australia
100%
100%
Accent Lifestyle Pty Ltd
Australia
100%
100%
Accent Active Pty Ltd
Australia
100%
100%
Subtype Limited(b)
New Zealand(d)
100%
100%
Accent Active (NZ) Limited
New Zealand(d)
100%
100%
Accent Lifestyle (NZ) Limited
New Zealand(d)
100%
100%
(a) Indirectly held through RCG Accent Group Holdings Pty Ltd.
(b) Indirectly held through Accent Group Ltd (New Zealand).
(c) Indirectly held through Accent Brands Pty Ltd.
(d) The functional currency of these foreign subsidiaries is NZD.
(e) Formerly known as RCG Retail Pty Ltd.
(f) Formerly known as Pivot Store Pty Ltd.
(g) These subsidiaries have been deregistered as of 29 June 2025.
79
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 36. DEED OF CROSS GUARANTEE
The following entities are party to a deed of cross guarantee under which each company guarantees the debts of
the others:
Accent Group Ltd
(ACN 108 096 251)
RCG Brands Pty Ltd
(ACN 125 433 972)
The Athlete's Foot Australia Pty Ltd
(ACN 001 777 582)
Accent OzSale Pty Ltd
(ACN 144 955 117)
RCG Accent Group Holdings Pty Ltd
(ACN 613 017 422)
Hype DC Pty Ltd
(ACN 081 432 313)
TAF eStore Pty Ltd
(ACN 158 031 040)
Accent Brands Pty Ltd
(ACN 001 742 552)
Platypus Shoes (Australia) Pty Ltd
(ACN 122 726 907)
42K Pty Ltd
(ACN 169 043 145)
Accent Store Development Pty Ltd
(ACN 611 621 482)
Subtype Pty Ltd
(ACN 628 866 419)
Sports Direct (Australia) Pty Ltd
(ACN 634 893 691)
Accent Lifestyle Pty Ltd
(ACN 636 815 284)
Accent Active Pty Ltd
(ACN 637 053 028)
By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare financial
statements and directors' report under Corporations Instrument 2016/785 issued by the Australian Securities and
Investments Commission.
The above subsidiaries and Accent Group Limited, together referred to as the ‘Closed Group’, have either originally
entered the Deed on 23 February 2017 or have subsequently joined the Deed.
Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial
position of the 'Closed Group'.
Statement of profit or loss and other comprehensive income
29 Jun 2025
$'000
30 Jun 2024
$'000
Revenue
1,317,150
1,301,315
Other income
14,788
9,769
Interest revenue
1,549
1,587
Cost of sales
(579,487)
(557,176)
Distribution expenses
(56,730)
(55,967)
Marketing expenses
(40,911)
(38,401)
Occupancy expenses
(21,521)
(32,749)
Employee expenses
(295,811)
(286,384)
Other expenses
(73,351)
(69,011)
Depreciation, amortisation and impairment expense
(156,330)
(165,243)
Finance costs
(28,315)
(26,180)
Profit before income tax expense
81,031
81,560
Income tax expense
(24,529)
(22,268)
Profit after income tax expense
56,502
59,292
Other comprehensive income
Net change in the fair value of cash flow hedges taken to equity, net of tax
(2,952)
(2,148)
Foreign currency translation
(29)
(1,369)
Other comprehensive income for the year, net of tax
(2,981)
(3,517)
Total comprehensive income for the year
53,521
55,775
80
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 36. DEED OF CROSS GUARANTEE (CONTINUED)
Statement of financial position
29 Jun 2025
$'000
30 Jun 2024
$'000
Current assets
Cash and cash equivalents
30,891
16,720
Trade and other receivables
52,320
54,787
Inventories
270,143
234,345
Lease receivables
5,837
7,459
Other current assets
6,561
6,347
Current tax receivable
6,679
4,246
Total current assets
372,431
323,904
Non-current assets
Property, plant and equipment
97,967
106,256
Right-of-use assets
260,225
236,370
Lease receivables
10,574
8,484
Intangibles
415,819
383,594
Net deferred tax assets
22,306
18,799
Total non-current assets
806,891
753,503
Total assets
1,179,322
1,077,407
Current liabilities
Trade and other payables
179,685
135,122
Deferred revenue
10,176
10,290
Provisions
19,109
19,296
Borrowings
–
10,659
Lease liabilities
116,678
123,034
Derivative financial instruments
5,611
315
Total current liabilities
331,259
298,716
Non-current liabilities
Provisions
2,081
1,736
Deferred revenue
1,314
1,197
Borrowings
139,594
139,594
Lease liabilities
240,879
226,630
Total non-current liabilities
383,868
369,157
Total liabilities
715,127
667,873
Net assets
464,195
409,534
Equity
Issued capital
451,377
390,926
Reserves
28,382
34,074
(Accumulated losses)/Retained earnings
(15,564)
(15,466)
Total equity
464,195
409,534
81
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 37. CASH FLOW INFORMATION
Reconciliation of profit after income tax to net cash from operating activities
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Profit after income tax expense for the year
57,660
59,530
Adjustments for:
Depreciation and amortisation
185,229
169,159
Share-based payments
(2,630)
(2,528)
Provision for asset impairment
(6,602)
14,134
Foreign exchange differences
60
307
Net gain on lease modifications
(3,461)
(748)
Other non-cash items
(107)
401
Change in assets and liabilities, net of the effect from acquisition of businesses
Receivables
3,128
326
Inventories
(35,965)
(24,738)
Trade creditors and provisions
50,017
35,372
Tax assets and liabilities
(212)
(5,164)
Net cash from operating activities
247,117
246,051
NOTE 38. EARNINGS PER SHARE
Consolidated
29 Jun 2025
$'000
30 Jun 2024
$'000
Profit after income tax
57,660
59,530
Profit after income tax attributable to the owners of Accent Group Limited
57,660
59,530
Number
Number
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
570,024,376
561,097,970
Adjustments for calculation of diluted earnings per share:
Performance rights
–
2,945,783
Weighted average number of ordinary shares used as the denominator in calculating
diluted earnings per share
570,024,376
564,043,753
Cents
Cents
Basic earnings per share
10.12
10.61
Diluted earnings per share
10.12
10.55
Recognition and measurement
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Accent Group Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
82
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 39. SHARE-BASED PAYMENTS
Performance rights
The objective of the Performance Rights Plan ('PRP') is to align the interests of employees of the Group with those of the
shareholders and provide employees of the Group who are considered to be key to the future success of the Company
with an opportunity to receive shares in order to reward and retain the services of those persons and recognise the
employees of the Group for their contribution to the future success of the Company.
Eligibility and grant of performance rights
The Board may, from time to time, grant performance rights to an employee of the Group who the Board determines
to be eligible to participate in the PRP. This may include an executive director of the Company but may not include a
non-executive director of the Company. The performance rights granted are under the terms and conditions of the PRP
and may include additional terms and conditions, including any performance conditions, as the Board determine. The
Board may only grant performance rights where an employee continues to satisfy any relevant conditions imposed by
the Board.
Vesting of performance rights
Vesting of performance rights are subject to prescribed performance conditions. The number of equity instruments
that are expected to vest is based on management’s assessment of the likelihood of the vesting conditions attached to
the equity instruments being satisfied. The key vesting conditions that are assessed are earnings per share targets and
required service periods. If the performance condition is met, 100% of the performance rights vest. If the performance
condition is not met, none of the performance rights vest unless the Board determines otherwise.
Recognition and measurement
The Group recognises the fair value at the grant date of equity settled shares as an expense with a corresponding
increase in equity over the vesting period. Fair value is independently determined using the Black-Scholes option pricing
model, as appropriate, that takes into account the exercise price, the term of the option, the impact of dilution, the share
price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free
interest rate for the term of the option. Vesting is also subject to the recipients of the performance rights remaining in
employment with the Company.
Lapsing of performance rights
An unvested performance right will lapse in various prescribed circumstances, unless the Board determines otherwise.
Such circumstances include:
–
the circumstances specified by the Board on or before the grant of the performance right;
–
if a participant ceases to be an employee and/or director of a Group company for any reason or they cease to satisfy
any other relevant conditions imposed by the Board at the time of the grant of the performance rights;
–
failure to meet the performance conditions attaching to the performance right or any performance condition no
longer, in the opinion of the Board, being capable of being satisfied in accordance with their terms; and
–
if in the opinion of the Board a participant acts fraudulently or dishonestly, is in breach of their material duties or
obligations to any Group company, has committed an act of harassment or discrimination or has done any act which
has brought the Group or any Group company into disrepute.
Performance rights outcomes
The performance condition for Tranche 4 of PRP had been met and the performance rights had therefore vested on 1 July
2024. More information is available in relation to the outcomes of performance rights within the Remuneration Report.
During the financial year ended 29 June 2025, Tranche 8 of PRP was granted to eligible employees. The assessed fair value
at respective grant dates were $1.87 and $1.96 per unit of performance right. The fair value at the respective grant dates is
independently determined using the Black-Scholes Model that takes into account the exercise price, the term of the PRP,
the share price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-
free interest rate for the term of the PRP.
The model inputs included:
–
Share price at the respective grant dates: $2.25 and $2.34
–
Expected dividend yield: 5.56%-5.78%
–
Risk-free interest rate: 4.35%
83
Annual Report 2025
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 39. SHARE-BASED PAYMENTS (CONTINUED)
Set out below are summaries of the performance rights granted:
29 Jun 2025
Grant date
Expiry date
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/other
Balance at
the end of
the year
03/10/2017
24/08/2023
–
–
–
–
–
27/12/2017
24/08/2023
–
–
–
–
–
20/06/2018
24/08/2023
–
–
–
–
–
30/11/2019
24/08/2023
–
–
–
–
–
30/11/2019
01/07/2024
2,945,783
–
(2,945,783)
–
–
30/11/2020
01/09/2024
5,210,171
–
–
(5,210,171)
–
28/06/2021
01/09/2025
4,291,526
–
–
(819,451)
3,472,075
02/11/2023
01/09/2026
4,275,253
–
–
(903,465)
3,371,788
17/11/2023
01/09/2026
1,225,831
–
–
–
1,225,831
21/11/2024
01/09/2027
–
1,175,115
–
–
1,175,115
24/01/2025
01/09/2027
–
3,788,205
–
–
3,788,205
17,948,564
4,963,320
(2,945,783)
(6,933,087)
13,033,014
30 Jun 2024
Grant date
Expiry date
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/other
Balance at
the end of
the year
03/10/2017
24/08/2023
6,400,000
–
(6,400,000)
–
–
27/12/2017
24/08/2023
3,250,000
–
(3,250,000)
–
–
20/06/2018
24/08/2023
200,000
–
(200,000)
–
–
30/11/2019
24/08/2023
743,238
–
(743,238)
–
–
30/11/2019
01/07/2024
2,945,783
–
–
–
2,945,783
30/11/2020
01/09/2024
5,388,809
–
–
(178,638)
5,210,171
28/06/2021
01/09/2025
4,530,648
–
–
(239,122)
4,291,526
02/11/2023
01/09/2026
–
4,275,253
–
–
4,275,253
17/11/2023
01/09/2026
–
1,225,831
–
–
1,225,831
23,458,478
5,501,084
(10,593,238)
(417,760)
17,948,564
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was
1.29 years (2024: 1 year).
NOTE 40. SUMMARY OF OTHER MATERIAL ACCOUNTING POLICIES
Material and other accounting policies adopted in the preparation of the financial statements are provided throughout
the notes. These policies have been consistently applied to all the years presented, unless otherwise stated.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is
held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is
no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
84
Accent Group Limited
for the year ended 29 June 2025
NOTES TO THE FINANCIAL STATEMENTS
NOTE 40. SUMMARY OF OTHER MATERIAL ACCOUNTING POLICIES (CONTINUED)
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity
instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition date fair values of the assets transferred, equity instruments
issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling
interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at
either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed
as incurred to profit or loss.
On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the Group's operating or
accounting policies and other pertinent conditions in existence at the acquisition date.
Where the business combination is achieved in stages, the Group remeasures its previously held equity interest in the
acquiree at the acquisition date fair value and the difference between the fair value and the previous carrying amount is
recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent
changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss.
Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for within
equity.
The difference between the acquisition date fair value of assets acquired, liabilities assumed and any non-controlling
interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing
investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is
less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference
is recognised as a gain directly in profit or loss by the acquirer on the acquisition date, but only after a reassessment
of the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any,
the consideration transferred and the acquirer's previously held equity interest in the acquirer.
If the initial accounting for a business contribution is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for items for which the accounting is incomplete.
Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as a reduction of the expense
to which it relates.
Dividends
Dividends are recognised when declared during the financial year.
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to,
the tax authority.
NOTE 41. EVENTS AFTER THE REPORTING PERIOD
Apart from the dividend declared as disclosed in Note 25 and the matters described above, no other matters or
circumstances have arisen since 29 June 2025 that have significantly affected, or may significantly affect the Group's
operations, the results of those operations, or the Group's state of affairs in future financial years.
85
Annual Report 2025
for the year ended 29 June 2025
As required by legislation, Australian public companies are to disclose details for each subsidiary in the consolidated
financial statements – including the tax residency of each of those entities during the financial year.
The consolidated financial statements incorporate the assets, liabilities, and results of the following subsidiaries in
accordance with the accounting policy described in Note 2:
29 Jun 2025
Name
Body corporate,
partnership or trust
Principal place
of business/
Country of
Incorporation
% of share
capital held
Australian
or Foreign
Resident
Countries of
residence for
tax purposes
Accent Group Limited
Body corporate
Australia
N/A
Australia
Australia
The Athlete's Foot Australia Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
RCG Brands Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
TAF eStore Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Accent OzSale Pty Ltd(a)(c)
Body corporate
Australia
100%
Australia
Australia
Accent Group Ltd(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
Platypus Shoes Ltd(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
Accent Footwear Ltd(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
Hype DC Ltd(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
TAF New Zealand Ltd(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
Accent Brands Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Platypus Shoes (Australia) Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
42K Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Accent Store Development Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
RCG Accent Group Holdings Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Hype DC Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Subtype Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Sports Direct (Australia) Pty Ltd(a)(d)
Body corporate
Australia
100%
Australia
Australia
Accent Lifestyle Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Accent Active Pty Ltd(a)
Body corporate
Australia
100%
Australia
Australia
Subtype Limited(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
Accent Active (NZ) Limited(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
Accent Lifestyle (NZ) Limited(b)
Body corporate
New Zealand
100%
Foreign
New Zealand
(a) These subsidiaries are part of a tax consolidated group with Accent Group Limited (Australia) as the head entity and taxpayer in the respect of the
group.
(b) These subsidiaries are part of a tax consolidated group with Accent Group Limited (New Zealand) as the head entity and taxpayer in the respect of
the group.
(c) Formerly known as RCG Retail Pty Ltd.
(d) Formerly known as Pivot Store Pty Ltd.
Basis of preparation
This consolidated entity disclosure statement (CEDS) has been prepared in accordance with the Corporations Act 2001
and includes information for each entity that was part of the consolidated entity as at the end of the financial year in
accordance with AASB 10 Consolidated Financial Statements.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
86
Accent Group Limited
for the year ended 29 June 2025
In the directors' opinion:
–
the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
–
●the attached financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as disclosed in Note 2 of the financial statements;
–
●the attached financial statements and notes give a true and fair view of the Group's financial position as at 29 June
2025 and of its performance for the financial year ended on that date;
–
●the attached consolidated entity disclosure statement is true and correct as at 29 June 2025;
–
●there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable; and
–
at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed
group identified in Note 36 to the financial statements will be able to meet any obligations or liabilities to which
they are, or may become, subject by virtue of the deed of cross guarantee described in Note 36 to the financial
statements.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
David Gordon
Chairman
22 August 2025
Melbourne
DIRECTORS' DECLARATION
87
Annual Report 2025
pwc.com.au
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006,
GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
Independent auditor’s report
To the members of Accent Group Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Accent Group Limited (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
a. giving a true and fair view of the Group's financial position as at 29 June 2025 and of its financial
performance for the period 1 July 2024 to 29 June 2025
b. complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
• the consolidated statement of financial position as at 29 June 2025
• the consolidated statement of changes in equity for the period 1 July 2024 to 29 June 2025
• the consolidated statement of cash flows for the period 1 July 2024 to 29 June 2025
• the consolidated statement of profit or loss and other comprehensive income for the period 1 July
2024 to 29 June 2025
• the notes to the consolidated financial statements, including material accounting policy information
and other explanatory information
• the consolidated entity disclosure statement as at 29 June 2025
• the directors’ declaration.
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
OF ACCENT GROUP LIMITED
88
Accent Group Limited
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
OF ACCENT GROUP LIMITED
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical Standards
Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion
on the financial report as a whole, taking into account the geographic and management structure of the
Group, its accounting processes and controls and the industry in which it operates.
Audit Scope
• Our audit focused on where the Group made subjective judgements; for example, significant
accounting estimates involving assumptions and inherently uncertain future events.
• In establishing the overall approach to the group audit, we determined the type of work that needed to
be performed by us, as the group auditor.
89
Annual Report 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
OF ACCENT GROUP LIMITED
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our
audit of the financial report for the current period. The key audit matters were addressed in the context
of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters. Further, any commentary on the outcomes of a particular audit
procedure is made in that context. We communicated the key audit matters to the Audit and Risk
Committee.
Key audit matter
How our audit addressed the key audit matter
The carrying value of Retail goodwill
(Refer to note 16)
The Group has recognised goodwill which is allocated
to the Retail cash generating unit (“CGU”).
The Group performed an impairment assessment for
goodwill by preparing a financial model to determine if
the carrying value of the Retail CGU assets are
supported by forecast future cash flows, discounted to
present values (the “model”).
We considered the carrying value of goodwill to be a
key audit matter due to the magnitude of the balances
and assumptions applied by the Group in estimating
future cash flows.
Our procedures included the following, amongst
others:
•
Obtaining the Retail CGU model and evaluating
the appropriateness of the valuation
methodology used to estimate the recoverable
amount of the Retail CGU assets with reference
to our understanding of the nature of the
Group’s operations.
•
Evaluating the Group’s cash flows forecast for
the Retail CGU included in the model and the
process by which they were developed, with
reference to the historical performance of the
business.
•
Assessing the historical accuracy of the Group’s
prior period forecasts by comparing them to
actual performance over the same period.
•
Assessing the key assumptions for
appropriateness with reference to external
market data where possible.
•
Together with PwC valuation experts,
comparing the discount rate and long-term
growth rate used in the model to external market
data.
•
Evaluating the reasonableness of disclosures in
the financial report in light of the requirements of
Australian Accounting Standards.
90
Accent Group Limited
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
OF ACCENT GROUP LIMITED
Key audit matter
How our audit addressed the key audit matter
Our procedures included the following, amongst
others:
•
Obtaining the Group’s assessment of indicators
for impairment for store assets and evaluating
its appropriateness.
For the stores where an impairment indicator was
identified:
o
Assessing the forecast cash flows assumptions
for the recoverable amount assessment for
appropriateness with reference to historical
growth rates and external market data where
possible.
o
Testing the mathematical accuracy of the
recoverable amount assessment and the
comparison to the carrying values of the store
assets.
o
Evaluating the appropriateness of the discount
rate used in the recoverable amount assessment.
o
Evaluating the reasonableness of the disclosures
in the financial report in light of the requirements
of Australian Accounting Standards.
The carrying value of right-of-use assets and
property, plant and equipment
(Refer to notes 14 and 15)
The Group has right-of-use assets and property, plant
and equipment that relate predominantly to retail stores
(“store assets”). The Group has determined that each
store is a separate CGU. A store is assessed for
impairment if an indicator of impairment is identified.
We considered the impairment assessment for store
assets to be a key audit matter due to the magnitude of
the balances and assumptions applied by the Group in
estimating future cash flows used in the assessment.
The valuation of inventory
(Refer to note 10)
The Group has recognised a net realisable value
provision against inventory. The Group’s estimate of
the inventory provision is based on historical finished
goods sold below cost and inventory write-offs.
We considered the valuation of inventory to be a key
audit matter due to the magnitude of the inventory
balance and the judgement required by the Group in
determining the net realisable value of inventory.
Our procedures included the following, amongst
others:
•
Obtaining the Group’s inventory provision
assessments and evaluating the
appropriateness of the methodology used.
•
Testing the mathematical accuracy of in the
calculation of the Group’s inventory provision
and comparing key inputs to supporting
evidence.
•
Comparing the selling price (net realisable
value) subsequent to period end to the recorded
cost, for a sample of inventory items.
•
Evaluating the reasonableness of disclosures in
the financial report in light of the requirements of
Australian Accounting Standards.
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Annual Report 2025
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
OF ACCENT GROUP LIMITED
Other information
The directors are responsible for the other information. The other information comprises the information
included in the annual report for the period 1 July 2024 to 29 June 2025, but does not include the
financial report and our auditor’s report thereon. Prior to the date of this auditor's report, the other
information we obtained included the Chairman and Chief Executive Officer's report, the sustainability
report and the directors' report. We expect the remaining other information to be made available to us
after the date of this auditor's report.
Our opinion on the financial report does not cover the other information and we do not and will not
express an opinion or any form of assurance conclusion thereon through our opinion on the financial
report. We have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
When we read the other information not yet received, if we conclude that there is a material
misstatement therein, we are required to communicate the matter to the directors and use our
professional judgement to determine the appropriate action to take.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
92
Accent Group Limited
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS
OF ACCENT GROUP LIMITED
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at: https://auasb.gov.au/media/bwvjcgre/ar1_2024.pdf. This
description forms part of our auditor's report.
Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in the directors’ report for the period 1 July 2024 to
29 June 2025.
In our opinion, the remuneration report of Accent Group Limited for the period 1 July 2024 to
29 June 2025 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the remuneration
report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
opinion on the remuneration report, based on our audit conducted in accordance with Australian
Auditing Standards.
PricewaterhouseCoopers
Alison Tait Milner
Melbourne
Partner
22 August 2025
93
Annual Report 2025
The shareholder information set out below was applicable as at 11 August 2025.
DISTRIBUTION OF EQUITABLE SECURITIES
Analysis of number of equitable security holders by size of holding:
Number
of holders
of ordinary
shares
1 to 1,000
5,305
1,001 to 5,000
5,905
5,001 to 10,000
2,675
10,001 to 100,000
3,920
100,001 and over
307
18,112
Holding less than a marketable parcel
1,451
EQUITY SECURITY HOLDERS
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Ordinary shares
Number held
% of total
shares
issued
CITICORP NOMINEES PTY LIMITED
165,983,020
27.61
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
64,323,930
10.70
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
43,598,813
7.25
NETWEALTH INVESTMENTS LIMITED
19,465,827
3.24
CRAIG JOHN THOMPSON
15,936,589
2.65
BNP PARIBAS NOMS PTY LTD
12,518,711
2.08
JAMES WILLIAM DUELL
12,000,000
2.00
MRS CINDY GILBERT
10,000,000
1.66
MR DANIEL JOHN GILBERT
10,000,000
1.66
HIT GROUP LIMITED
7,500,000
1.25
BNP PARIBAS NOMINEES PTY LTD
4,000,213
0.67
BNP PARIBAS NOMINEES PTY LTD
3,464,141
0.58
BNP PARIBAS NOMINEES PTY LTD
3,159,284
0.53
NATIONAL NOMINEES LIMITED
3,052,004
0.51
RIVAN PTY LTD
2,599,034
0.43
PITTMANN PTY LIMITED
2,391,130
0.40
BODYELECTRIC PTY LTD
1,500,000
0.25
MR STEVEN COHEN + MR LEON HOWARD COHEN
1,250,000
0.20
MR TERRY SPYRIDES
1,150,000
0.19
UBS NOMINEES PTY LTD
1,134,983
0.18
385,027,679
64.04
SHAREHOLDER INFORMATION
94
Accent Group Limited
SHAREHOLDER INFORMATION
SUBSTANTIAL HOLDERS
Substantial holders in the Company are set out below:
Ordinary shares
Number held
% of total
shares
issued
Frasers Group plc
119,635,949
19.90
VOTING RIGHTS
The voting rights attached to ordinary shares are set out below:
Ordinary shares
All ordinary shares carry one vote per share without restriction.
There are no other classes of equity securities.
95
Annual Report 2025
CORPORATE DIRECTORY
DIRECTORS
David Gordon – Chairman
Daniel Agostinelli - Chief Executive Officer
Michael Hapgood
Donna Player
Anne Loveridge AM
Lawrence Myers
David Forsey (appointed 21 November 2024)
Brett Blundy (resigned 28 August 2024)
Timothy Dodd – alternate Director for Brett Blundy
(resigned 28 August 2024)
JOINT COMPANY SECRETARIES
Matthew Durbin
Nicole Nuttall
REGISTERED OFFICE AND PRINCIPAL
PLACE OF BUSINESS
2/64 Balmain Street
Richmond VIC 3121
Telephone: +61 3 9427 9422
Facsimile: +61 3 9427 9622
Email: investors@accentgr.com.au
SHARE REGISTER
Computershare Investor Services Pty Limited
Level 4
60 Carrington Street
Sydney NSW 2000
Telephone: 1300 787 272
AUDITOR
PricewaterhouseCoopers
2 Riverside Quay, Southbank
Melbourne VIC 3006
BANKERS
National Australia Bank
Hongkong and Shanghai Banking Corporation
Australia and New Zealand Banking Group
STOCK EXCHANGE LISTING
Accent Group Limited shares are listed on the
Australian Securities Exchange (ASX code: AX1)
WEBSITE
www.accentgr.com.au
CORPORATE GOVERNANCE
STATEMENT
www.accentgr.com.au/investor/investor-documents
CORPORATE DIRECTORY
Accent Group Limited
(ABN: 85 108 096 251)
2/64 Balmain Street, Richmond VIC 3121
+61 3 9427 9422
www.accentgr.com.au