Accent Group (AX1) H1 2026 earnings summary

Executive summary

• Total sales for H1 FY26 reached $865.2 million, up 2.4% year-over-year, with owned sales up 5.7% and wholesale sales up 9.4%.

• Net profit after tax was $28.1 million, down 40.5% year-over-year, impacted by non-recurring trading losses and provisions for business closures.

• 27 new stores opened and 21 closed, bringing the network to 898 stores, including online, with further expansion planned.

• Interim dividend of 3.25 cents per share, fully franked, representing a ~70% payout ratio.

• Key brand launches included Sports Direct and Lacoste flagship stores, with strong early trade and further expansion planned.

Financial highlights

• EBIT was $56.5 million, within guidance, and EBITDA was $156 million; EBIT from continuing business (excluding Ozsale and Glue) was $72.7 million.

• Gross margin for continuing business was 54.3%, impacted by a promotional environment and AUD/USD exchange rate decline.

• Cost of doing business managed at 44.3%, with efficiencies in leases, staffing, and marketing.

• Net profit after tax for the half was $28.1 million; basic and diluted EPS fell to 4.67 cents.

• Wholesale sales rose 9.4% year-over-year, led by Hoka, Ugg, and Lacoste.

Outlook and guidance

• H2 FY26 EBIT guidance is $30M–$35M, including Glue losses, assuming flat LFL sales and gross margin.

• Sales (excluding TAF franchise) for the first 8 weeks of H2 FY26 grew 7.1% year-over-year.

• Recent AUD/USD strengthening expected to support gross margin in late FY26 and into FY27.

• At least 40 new stores planned for FY26, with further closures of loss-making locations expected.

• Investor Strategy Day planned for Q4 FY26 to update on growth priorities and financial framework.