Accent Group (AX1) H2 2025 earnings summary

Executive summary

• Total sales including franchisees reached $1.62 billion, up 0.8% year-over-year, with owned retail sales at $1.3 billion, up 2.5%, and 54 new stores opened, bringing the network to over 892 stores.

• EBIT was $110.2 million, at the upper end of guidance, and NPAT was $57.7 million, both slightly down from FY24.

• The company expanded its brand portfolio, securing long-term distribution agreements for Skechers (extended to 2035), Dickies, Lacoste, and others.

• Strategic partnership with Frasers Group to launch Sports Direct in ANZ, with at least 50 stores planned over six years.

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

Financial highlights

• Group sales (including franchisees) grew 0.8% to $1.62 billion; owned retail sales rose 2.5% to $1.3 billion.

• EBIT was $110.2 million, including $3.3 million in non-recurring items; EBITDA was $288.8 million, down 1.7% year-over-year.

• Net profit after tax was $57.7 million, down 3.1% from FY24.

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

• Net debt improved to $100 million from $122.2 million in FY24.

Outlook and guidance

• Targeting high single-digit EBIT growth in FY26, including Sports Direct startup costs.

• H1 FY26 EBIT expected to be flat versus H1 FY25, with growth anticipated in H2 FY26.

• Like-for-like retail sales for the first seven weeks of FY26 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 FY26.

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