Accent Group (AX1) H2 2025 earnings summary

Executive summary

• Total sales including franchisees reached AUS 1.62 billion, up 0.8% year-over-year, with owned retail sales at AUS 1.3 billion, up 2.5%.

• Achieved sales growth and profitability for FY 2025, with continued progress on strategic objectives and customer focus.

• Opened 54 new stores, bringing the total to 903, including online platforms, with 39 closures from discontinued or underperforming banners.

• Secured new and renewed distribution agreements with major brands, including extension of Skechers to 2035 and new distributed brands HOKA, UGG, Lacoste, and Dickies.

• Launched a strategic partnership with Frasers Group to introduce Sports Direct to the ANZ market, with at least 50 stores planned over six years.

Financial highlights

• Group sales (including franchisees) reached AUS 1.62 billion, up 0.8% year-over-year.

• EBIT was AUS 110.2 million, including AUS 3.3 million in non-recurring items, at the upper end of guidance.

• Net profit after tax was AUS 57.7 million, down 3.1% year-over-year.

• Gross margin declined 85 basis points to 54.9% due to a more promotional environment.

• Owned retail sales grew 2.5% to AUS 1.3 billion.

Outlook and guidance

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

• H1 FY 2026 EBIT expected to be flat versus H1 FY 2025, with growth anticipated in H2.

• Like-for-like retail sales for the first seven weeks of FY 2026 up 0.8%; total owned sales up 2%.

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

• Gross margin and cost of doing business percentages expected to remain broadly flat.