The trans-Tasman retailer behind The Athlete's Foot and Dr Martens has made a strong start to the financial year, thanks to a strong performance by the recently acquired Accent Group.
RCG Corporation bought Accent in May, handing it control of the Platypus Shoes brand and making it the distributor of seven international brands including Vans, Skechers, Dr Martens and Timberland.
Shareholders at RCG's annual meeting on Wednesday heard that retail sales for the New Zealand-based Accent during the first 16 weeks of fiscal 2016 had exceeded expectations by leaping 30 per cent.
RCG is forecasting low double-digit like-for-like full year retail sales growth for Accent, and will issue trading update after the key December and January trading period.
Accent is expected to open 28 stores during fiscal 2016, of which 17 will have opened by the end of December this year.
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Accent's wholesale business is also expected to deliver high single-digit growth for the year, driven primarily by the Skechers brand.
Meanwhile, RCG's Athlete's Foot chain has lifted comparable sales by five per cent in the first 16 weeks of the new financial year.
The group expects low single-digit comparable sales growth for the year, resulting in low single-digit earnings growth.
RCG said it was carrying out a major strategic review of The Athlete's Foot to help set a platform for future growth.
The group's distribution business, which includes the Saucony, CAT and Merrell brands, is expected to deliver high single-digit sales growth during the year.
RCG expects to meet its forecast of consolidated earnings of between $55 million and $57 million in 2015/16.
The group reported underlying earnings of $21.8 million for the year to June 30, including contributions from Accent.
