Shoe retailer plans e-commerce launches
Following the acquisition of footwear retailer Hype DC, RCG Corporation plans to launch new e-commerce sites for Platypus and Skechers shoes before the end of the year.
RCG Corporation, which owns Althete’s Foot, made its second major acquisition in 18 months yesterday, buying footwear retailer Hype DC for $105 million.
RCG chief executive Hilton Brett said Hype has a strong integrated e-commerce business and expertise which RCG will leverage across its group of brands following the acquisition.
“We have got quite a lot of experience in the group but we think that with the Hype acquisition there is obviously opportunity to look at best practice across our group and improve our e-commerce offering across the business as we continue to grow,” Brett said.
A new Platypus Shoes e-commerce store will launch in September and the group plans to launch a Skechers e-commerce site towards the end of the year.
Hype operates 57 Hype DC stores and three Shubar retail stores across Australia and generated sales of approximately $120 million in FY16.
In March 2015, RCG Corporation paid $200 million to acquire the Accent Group, the owner of the retail chain Platypus Shoes and the distributor and retailer of brands including Vans, Skechers and Dr. Martens.
RCG also provided a trading update on Monday. The group said its FY16 underlying EBITDA is likely to be $60 million, the top-end of its guidance range. Underlying earnings in FY17, including the Hype DC deal, are expected to come in at $90 million.
Shares in RCG jumped 24.3 per cent, or 35.5 cents, to $1.815 on Monday on the stronger earnings outlook.