Accent Group (AX1) H1 2025 earnings summary

Executive summary

• Total sales reached AUD 845 million for H1 FY25, up 4.2% year-over-year, with 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 owned brands, and cost efficiencies.

• 42 new stores opened, bringing the total to 903, while 17 Trybe stores were divested and underperforming Glue stores closed.

• Interim fully franked dividend of 5.5 cents per share declared for H1 FY25, payable 20 March 2025.

• Frasers Group plc acquired a 14.65% strategic stake in August 2024, with ongoing negotiations for a long-term agreement.

Financial highlights

• Owned sales grew 4.6% to AUD 767 million; total sales including franchisees were AUD 844.6 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.

• Like-for-like retail sales rose 2.9% year-over-year.

• Net profit margin was 5.6% for H1 FY25.

Outlook and guidance

• At least 10 new store openings planned for H2 FY25, with continued focus on profitable banners and refurbishments.

• LFL sales for the first 7 weeks of H2 FY25 up 2.2% year-over-year; gross margin down ~70bps.

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

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

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