Accent Group (AX1) investor relations material

Executive summary

• Total sales reached $1.62 billion, up 0.8% year-over-year, with EBIT of $110 million and NPAT of $57.7 million, meeting the upper end of guidance.

• Opened 54 new stores, bringing the network to 892–903, and signed new distribution agreements with Lacoste and Dickies; renewed agreements with Merrill and Timberland.

• Extended Skechers distribution agreement to 2035 and launched a strategic partnership with Frasers Group to bring Sports Direct to ANZ, with the first store opening in Melbourne in November and at least 50 stores planned over six years.

• Over 10 million contactable customers and 31 websites, reflecting strong omnichannel reach.

• Store network changes included 54 openings and 39 closures from discontinued brands and underperforming banners.

Financial highlights

• Gross margin declined 85 basis points to 54.9% due to a more promotional environment and lower sales in H2.

• Cost of doing business rose to 46.6%, impacted by low like-for-like sales in H2 and inflationary pressures.

• Net profit after tax was $57.7 million; EBITDA declined 1.7% to $288.8 million.

• Owned retail sales grew 2.5% to $1.3 billion; wholesale sales were $155 million.

• Dividend payout ratio was 70% of earnings per share, with a fully franked dividend of 7¢ per share.

Outlook and guidance

• Targeting high single-digit EBIT growth in FY 2026, inclusive of Sports Direct startup costs.

• H1 FY 2026 EBIT expected to be flat year-over-year, with growth anticipated in H2.

• Gross margin and cost of doing business percentages projected to remain broadly flat to FY 2025.

• At least 30 new stores (excluding Sports Direct) and at least 4 Sports Direct stores planned for FY 2026.

• Growth to be driven by new stores, franchise reacquisitions, new distributed brands, and expansion of Hoka and Nude Lucy.