Accent (ASX:AX1) share price on watch after announcing Glue acquisition
James Mickleboro | April 23, 2021 9:26am |
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Accent Group Ltd (ASX: AX1) share price will be one to watch on Friday.
This follows news that the footwear-focused retailer is adding to its collection of store brands with a new acquisition.
What is Accent acquiring?
This morning Accent confirmed reports that it has signed an agreement to acquire the Glue Store retail business and the wholesale and distribution brands business of Next Athleisure for a cash consideration of $13 million.
Glue Store is a leading Australian youth apparel, shoe and accessory retailer offering a range spanning global street, fashion, and sport cultures.
ASX flat; AMP to pursue spin-off; Kogan slumps
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Gold at $US1800 back on the table
Vesna Poljak
Broker Macquarie has canvassed the possibility of gold at $US1800 an ounce if it can consolidate above the $US1765 an ounce level, which is optimistic for Perseus Mining, one of the gold juniors it rates outperform .
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Perseus is expected to produce at the top-end of its guidance range in the second half, on the broker s estimates. Macquarie also favours Aurelia Metals and Bellevue Gold among the juniors.
From a macro perspective, Macquarie thinks the decline in bond yields and rally in gold is unlikely to be sustainable without a deterioration in economic data. Next week s FOMC meeting seems far too early for increased taper talk but the key question remains at what point does data prove sufficient for the market to start pricing tapering.
The Kogan share price fell around 14% today after giving a business update.
For the three months to 31 March 2021, gross sales went up 47% and revenue rose by more than 65%. Gross profit grew by more than 54% and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 24%. Kogan active customers went up by 77% to 3.22 million.
The ASX 200 share said that it has continued its long-term strategy of investing in technology, brand awareness, logistics capability, platform improvements and Kogan First membership benefits to lay the foundation for future growth and provide ongoing improvements in the customer experience.
However, in the period to March 2021, customer demand fluctuated below the levels seen in the prior nine months to December 2020. As a result, the company was required to store larger amount of inventory, after ordering a high level of product in reaction to the demand seen in the first half of the financial year. This resulted in high sto
The Australian share market finished marginally higher in choppy trading on Friday, 23 April 2021, as gains in financials, materials, healthcare and telecom were offset by losses among consumer discretionary, utilities and consumer staples stocks.
At closing bell, the benchmark S&P/ASX200 advanced 5.26 points, or 0.07%, to 7,060.71. The broader All Ordinaries gained 8.74 points, or 0.12%, to 7,320.71.
For the week, the benchmark S&P/ASX200 edged 0.04% lower.
Among ASX sectors, consumer discretionary, utilities and consumer staples was down 1%, 0.7% and 0.6% respectively. Financials and telecom both gained 0.4%, while materials and health care also saw notable increases.
Youfoodz shares slumped 15% after the food prep & delivery service released March quarter update stating wholesale (B2B) revenue & sales were weaker due to impacts from COVID-19.
Accent Group snaps up Glue Store and Next Athleisure for $13 million
By Imogen Bailey | 23 April 2021
Glue Store is a youth apparel, shoe and accessory retailer which operates 21 stores across Australia.
The business also operates an integrated online site and has a strong loyalty database with around 500,000 members.
Glue Store generates annual sales of approximately $90 million, including $16.6 million in online sales.
The acquisition will see Accent acquire all of Glue s in-house brands including Nude Lucy, Beyond Her, Lulu & Rose and Article One, which drive more than 25% of sales.
If approved by brand owners, Accent will also take on Next Athleisure s (NAL) distribution rights of global brands including Superga, Ellesse, Le Coq Sportif, Kappa, K-Way, Sebago and Napapijri.