Accent Group (AX1) H1 2026 earnings summary

Executive summary

• Total sales for H1 FY26 reached AUD 865 million, up 2.4% year-over-year, with retail sales up 5.2% and wholesale sales up 9.4%.

• Net profit after tax was AUD 28.1 million, down 40.5% year-over-year, impacted by non-recurring trading losses, business closures, and a promotional retail environment.

• 27 new stores opened and 21 closed, expanding the network to 898 stores, with further expansion planned in H2.

• Key brand launches included the first Sports Direct store and a Lacoste flagship in Melbourne.

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

Financial highlights

• EBIT was AUD 56.5 million, within guidance but down 29.9% year-over-year; EBITDA was AUD 156.0 million, down 1.4%.

• Gross margin for continuing business was 53.0%, down from 55.6% due to a promotional environment and weaker AUD/USD exchange rate.

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

• Net profit after tax for the half was AUD 28.1 million.

• Net working capital increased to AUD 153.4 million, with inventories rising due to new store openings and reacquisitions.

Outlook and guidance

• H2 FY26 EBIT guidance is AUD 30–35 million, assuming flat like-for-like sales and gross margin.

• Recent AUD strength expected to support gross margin in late FY26 and into FY27.

• At least 40 new store openings are planned for H2 FY26.

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

• Forward wholesale order book is strong, supporting growth in H2.