Accent Group has confirmed it will exit the Glue Store business in Australia, with plans to close or sell the brand’s remaining 16 stores before the end of the current financial year. The decision follows another difficult reporting period, with Glue posting an EBIT loss of $8.4 million after accounting for store closure costs.
The announcement brings one of Australia’s best-known multi-brand fashion chains closer to the end of its retail journey. Accent said it will either sell or wind down the remaining stores as it redirects investment toward brands that have delivered stronger financial returns.
Losses made a full exit unavoidable
Glue Store has faced mounting pressure over recent years as higher operating expenses and cautious consumer spending weighed on performance. In 2024, Accent had already closed 17 underperforming locations in an effort to improve results, but the latest figures showed the business was still generating significant losses.
Instead of maintaining a smaller network, the retailer has now chosen to completely remove Glue Store from its portfolio, allowing management to focus on faster-growing parts of the business.
Accent is investing in global retail brands
While Glue exits the market, Accent continues expanding internationally recognised retail concepts including Sports Direct, HOKA, and Lacoste. The company believes these specialised brand stores offer stronger long-term growth opportunities than the traditional multi-brand streetwear model.
Sports Direct opened its first Australian store in Victoria and remains a major part of Accent’s future expansion strategy, with additional locations expected over the coming years.
The decision reflects wider changes across Australia’s retail industry, where shoppers are increasingly spending on dedicated brand stores and premium footwear. More details on the company’s restructuring are available in this report on Accent Group’s Glue Store closure strategy.
Revenue grew but profits came under pressure
Despite the problems at Glue Store, Accent Group’s overall business continued to grow. First-half revenue increased to $816.9 million, around 5% higher than the same period last year.
However, rising operating costs reduced profitability, with net profit after tax falling 40% to $28.1 million. The company’s wholesale division remained a bright spot, helped by continued demand for brands including HOKA and UGG.
Accent also announced an interim dividend of 3.25 cents per share, signalling confidence in the broader business despite the cost of restructuring.
Why the market responded positively
Investors often welcome the removal of businesses that consistently lose money, particularly when management has a clear plan for future growth. Accent Group shares moved higher after the announcement as the market viewed the Glue exit as a step toward improving future earnings and simplifying operations.
By concentrating resources on stronger-performing brands, the company aims to improve margins while reducing the financial drag created by the struggling fashion chain.
Staff and remaining stores face uncertainty
Accent has not announced how many employees will be affected or confirmed the future of every individual store. Some locations may be sold, while others could potentially be converted into different retail formats operated by the group.
With almost 900 physical and online stores across Australia and New Zealand, Accent may be able to redeploy some workers, although no detailed employment plan has been released.
The end of a familiar fashion retailer
Founded in 1998, Glue Store became known for bringing together leading global fashion and streetwear brands under one roof. Accent Group acquired the business in 2021, but changing shopping habits, rising business costs and increasing competition from standalone brand stores made the model more difficult to sustain.
Its closure highlights how Australia’s retail landscape continues to evolve, with major retailers placing greater emphasis on specialist brands, athletic footwear and premium shopping experiences rather than traditional multi-brand fashion chains.
Accent’s latest financial announcements and investor updates are available through its official ASX investor information page.
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