consumer

Key Highlights

  • Accent Group (ASX:AX1) shares were down 6.71% at A$0.74 on 21 August 2026 at 10:26 am GMT+10.
  • FY26 total sales increased to A$1.64 billion from A$1.62 billion, while EBITDA fell to A$278.9 million from A$288.8 million.
  • Statutory NPAT moved to a A$13.8 million loss after a A$48.6 million non-cash Goodwill impairment, compared with a A$57.7 million profit in FY25.
  • FY26 total dividends declined to 4.5 cents per share from 7.0 cents, including a final fully franked Dividend of 1.25 cents.

Accent Group Limited (ASX:AX1) shares were trading at A$0.74 on 21 August 2026 at 10:26 am GMT+10, down 6.71%, or A$0.053, on the session. The decline came as the footwear and apparel retailer reported FY26 results showing higher sales but lower EBITDA, a statutory net loss and a reduced dividend. Total sales rose to A$1.64 billion from A$1.62 billion, while reported EBIT declined to A$34.0 million from A$110.2 million and statutory NPAT fell from a A$57.7 million profit to a A$13.8 million loss.

Sales Growth Contrasts With Lower Profitability

Accent Group's FY26 total sales increased approximately 0.9% year on year to A$1.635 billion. Owned sales, excluding Athlete's Foot Franchise sales, rose 4.7% to A$1.527 billion. However, comparable retail sales declined 0.5% for the full year, with the first half recording 0.9% growth before the second half declined 2.0%.

The company said fourth-quarter trading was materially affected by geopolitical tensions and weaker consumer confidence. Sports-oriented brands including The Athlete's Foot, Hoka, Merrell and Saucony continued to record growth, while Skechers, Stylerunner and UGG also increased sales. Nude Lucy delivered another record year of sales and profit.

Profitability faced greater pressure. EBITDA fell to A$278.9 million from A$288.8 million, while gross Margin declined to 53.1% from 54.9%. Accent attributed the margin movement to a heightened promotional environment, loss-making businesses, inventory management and a lower Australian dollar.

Statutory Loss Reflects Goodwill Impairment

Accent reported EBIT of A$34.0 million, compared with A$110.2 million in FY25. A significant Factor was a A$48.6 million non-cash goodwill Impairment charge following the company's year-end assessment.

Excluding the impairment and other significant items, underlying EBIT was A$105.3 million, while underlying NPAT was A$51.0 million. EBIT before the goodwill impairment was A$82.6 million, which was above the midpoint of the company's previously issued guidance range.

The statutory result nevertheless moved into negative territory, with NPAT falling to a A$13.8 million loss. Statutory EPS was negative 2.3 cents, compared with underlying EPS of 8.5 cents.

Dividend Falls as Capital Priorities Continue

Accent declared a final fully Franked Dividend of 1.25 cents per share, taking FY26 dividends to 4.5 cents per share. This compares with total dividends of 7.0 cents per share in FY25, representing a reduction of 2.5 cents per share.

The company said the dividend decision considered earnings, cash generation, its balance sheet, franking credits and capital requirements associated with its strategic initiatives.

During FY26, Accent deployed A$39.5 million toward investments, including A$12.3 million for Sports Direct and A$27.2 million for the reacquisition of 17 Athlete's Foot franchise stores.

Sports Direct and Athlete's Foot Remain Central

Accent ended FY26 with 876 stores and websites after opening 43 locations and closing 59. Sports Direct had three stores trading, including its online operation, by year-end, with a fourth store subsequently opening at Miranda in New South Wales.

The Athlete's Foot reacquisition program also advanced, with 17 franchise stores acquired during FY26 and 28 franchise stores remaining. The company expects these acquisitions to contribute further EBIT as corporate ownership expands.

Accent's 2030 Strategic Growth Plan targets at least A$1.9 billion of sales, a 9% or higher EBIT margin and approximately 950 stores by 2030. The plan includes cost reductions, store portfolio optimisation, additional Athlete's Foot reacquisitions and expansion of Sports Direct.

FY27 Begins With Mixed Trading

Early FY27 trading showed a mixed picture. Total owned sales excluding closed businesses increased 3.2% during the first seven weeks, while like-for-like retail sales declined 2.0%.

July gross margin was higher than the prior year, although customers continued to respond to value offers and promotions. Accent said August sales improved compared with July. Sports-related categories, including The Athlete's Foot, recorded positive like-for-like sales, while Nude Lucy also remained positive.

The company has already actioned initiatives expected to generate A$10 million to A$15 million of net cost savings in FY27. It also expects potential gross-margin benefits from foreign-exchange hedging and further contributions from franchise reacquisitions, store optimisation and new stores.

Balance Sheet and Funding

Accent reported net Debt of A$141 million at FY26 year-end, representing a Leverage Ratio of 1.18 times. The company also had A$60.9 million of undrawn committed facilities and A$64.2 million of at-call funds within its funding arrangements.

During FY26, Accent refinanced its debt facilities, increasing total debt capacity by A$102 million to A$372 million and extending Facility Maturity to December 2028.

Conclusion

Accent Group's FY26 results show a Business generating higher sales while facing pressure on margins, EBITDA, statutory profit and dividends. The A$48.6 million goodwill impairment pushed reported NPAT into a loss, although underlying EBIT remained above A$100 million. The company has also reduced its exposure to loss-making operations while expanding Sports Direct and reacquiring Athlete's Foot franchises. Early FY27 trading indicates improving sales momentum from the weak fourth quarter, but like-for-like sales remain negative and the consumer environment continues to be volatile. The effectiveness of Accent's cost initiatives, Brand expansion and store portfolio changes will therefore remain important factors in the company's financial performance.