Accent Group (AX1) H1 2025 earnings summary

Executive summary

• Total sales (including franchisees) reached AUD 845 million for H1 FY25, up 4.2% year-over-year, with statutory revenue at AUD 776 million and net profit after tax rising 11.7% to AUD 47.2 million.

• EBIT increased 11.5% to AUD 80.7 million, driven by new store openings, strong vertical brand growth, and cost efficiencies.

• 42 new stores opened, bringing the total to 903, with 17 Trybe stores divested and ongoing closures of underperforming Glue stores.

• Contactable customer database reached 10 million, with loyalty program membership at 8.1 million.

• Interim fully franked dividend of 5.5 cents per share declared for H1 FY25.

Financial highlights

• Owned retail sales grew 4.6% to AUD 767 million, with LFL retail sales up 2.9% and wholesale sales up 1.3% to AUD 83.4 million.

• EBITDA was AUD 158.3 million, up 0.5% year-over-year; EBIT reached AUD 80.7 million.

• Gross margin declined 100 basis points to 55.6% due to a more promotional environment.

• Net working capital increased to AUD 137.4 million, reflecting higher inventory for store expansion; net debt stood at AUD 115.9 million.

• EPS was 8.35 cents, up from 7.55 cents year-over-year.

Outlook and guidance

• LFL sales for the first seven weeks of H2 FY25 up 2.2% year-over-year; gross margin down 70 basis points.

• At least 10 new stores planned for H2 FY25, with continued focus on profitable banners, store refurbishments, and new distributed brands (HOKA, UGG, Dickies, Lacoste).

• Athlete's Foot franchise reacquisition program on track, with 10 more stores to be acquired by June 2025.

• Ongoing negotiations with Frasers Group for a long-term strategic agreement, expected to conclude in H2 FY25.

• Board reiterates intent to pay out excess cash not required for investment.