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%.

• Net profit after tax declined 3.1% to $57.7 million due to margin pressure and a challenging consumer environment.

• Store network expanded to 903 stores, with 54 new openings and 39 closures from discontinued brands and underperforming banners.

• Strategic progress included launching Sports Direct in Australia/NZ, acquiring Lacoste and Dickies distribution, and closing underperforming stores.

• 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 year-over-year.

• EBIT was $110.2 million, including $3.3 million in non-recurring items, and EBITDA declined 1.7% to $288.8 million.

• Net profit after tax was $57.7 million; net profit margin was 3.6%.

• 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, inclusive of Sports Direct startup costs.

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

• 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 continued expansion of Hoka and Nude Lucy.