Half Year 2026 Accent Group Ltd Earnings Call Transcript
Key Points
- Accent Group Ltd (ASX:AX1) reported a total sales growth of 2.4% for the half year, reaching $865 million.
- The company successfully opened 27 new stores, expanding its network to 898 stores, including online platforms.
- The launch of new brands like Lacoste and the opening of new stores, such as the first Sports Direct store, have shown promising early results.
- Accent Group Ltd (ASX:AX1) maintained a disciplined approach to inventory management, keeping inventory levels in line with plans.
- The company announced a fully franked interim dividend of $0.0325 per share, representing a payout ratio of around 70% of earnings per share for the half.
- The promotional trading environment impacted the gross margin, which was reported at 54.3%, affected by the decline in the AUD/USD exchange rate.
- The company faced challenges in the New Zealand market, with sales down by 1.2%, indicating a tough trading environment.
- Accent Group Ltd (ASX:AX1) had to close 21 stores, including 12 loss-making Glue and Vans stores, which could impact future profitability.
- The cost of doing business was impacted by inflationary pressures, with store lease negotiations and wage rates being areas of concern.
- The company reported a net profit after tax of $28.1 million, which may not meet investor expectations given the sales growth.
To be placed in the virtual queue, the raise hand button can be found at the bottom of your Zoom screen. Now, Daniel, over to you.
Thank you. Good morning, everyone, and thank you for taking the time to attend the call today. Joining me on the call is our finance director, Matthew Devin. We will now take you through the results for the half year and the 28th of December 2025 and a trading update for the 1st 8 weeks of H2 F26. There will be an opportunity to ask questions at the end. In a promotional trading environment across many of our businesses. The athlete's foot, poker, Merrill, and nude Lucy all experience strong growth and pleasingly platypus also grew. Wholesaler ahead of pro year for the first half and forward orders for the second half are also ahead of pro year. Cost of doing business and inventory, control continued to be well managed. If I can now refer you to the operational highlights on page 3 of our investor presentation, which was released to the ASX this morning. Some key li
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