The Accent Group Ltd (ASX: AX1) share price is up after it announced an exclusive distribution deal for Reebok.
Accent deal with Reebok
Authentic Brands Group (ABS) has signed Accent on as the new exclusive distributor in Australia and New Zealand for Reebok.
The deal is expected to be completed in the first quarter of 2022 and Accent will have an initial term of 10 years. Reebok distribution through Accent is expected to start in the second quarter of 2022.
Management said that it plans to grow the Reebok brand in Australia and New Zealand. It will utilize existing Reebok wholesale accounts, direct to consumer online sales and Accent’s multi-brand retail banners.
Reebok and Authentic Brands Group
Authentic Brands Group describes itself as a brand development, marketing and entertainment company. It recently signed an agreement to acquire Reebok earlier in 2021.
Accent will become the exclusive distributor for Reebok as soon as Reebok’s ownership has been transferred from adidas AG to Authentic Brands Group.
Management comments
Chief Operating Officer at ABG Corey Salter said: “We are excited to implement the new global strategy for Reebok. Accent Group is an industry leader and we are thrilled to partner with them in this important region.”
Accent Group CEO Daniel Agostinelli said: “Reebok is an iconic global brand that needs no introduction. We are delighted to be the new distributor in Australia and New Zealand.
“The Reebok distribution agreement further strengthens Accent Group’s competitive moat – a broad and deep portfolio of international and vertical brands that is digital first, customer obsessed and delivers product differentiation and strong margins.”
Final thoughts on the Accent share price
I’m not surprised to see that the market likes this deal considering how big of a brand Reebok is in the shoe world. The Accent share price is up over 1.5% at the time of writing
The more brands and scale that Accent has, the stronger market position it can achieve, which will hopefully lead to growing profit margins.
Accent is one of my preferred ASX retail shares and it also pays a good dividend, so it could be a good one for the watch list of ASX dividend shares.
