Full Year 2026 Accent Group Ltd Earnings Call Transcript
Key Points
- Underlying EBIT of $105.3 million exceeded the midpoint of guidance, with operating EBIT above the top end when excluding advisor costs.
- Strong growth in vertical brands, with Nude Lucy achieving record sales and profit and 48 stores now open.
- Cost-out program on track, with $30 million in gross savings actioned for FY27 and a net benefit of $10-15 million expected.
- FX hedging position expected to provide $10-20 million in gross margin upside in FY27.
- The Athlete's Foot reacquisition program on track, with 17 buybacks completed and $10 million incremental EBIT expected in FY27.
- Statutory net loss after tax of $13.8 million due to a $48.6 million non-cash goodwill impairment.
- LFL retail sales declined 0.5% in FY26, with a further 2% decline in the first seven weeks of FY27.
- Trading environment remains volatile, with promotional intensity high and consumer sentiment weak.
- Sports Direct is expected to be a net EBIT detraction of $4-6 million in FY27 due to ongoing investment.
- Dividend reduced to $0.045 per share from $0.07 in FY25, reflecting lower earnings.
(audio in progress) -- in FY 2025.
EBITDA was $278.9 million compared to $288.8 million in the prior year. EBIT before the non-cash goodwill impairment was $82.6 million, above the midpoint of the guidance range of $79.5 million to $84.5 million, provided in our trading update on May 4.
Before the $2.1 million of advisor costs relating to the Frasers Group take-over proposal, operating EBIT would have been $84.7 million, just above the top end of the guidance range.
Underlying EBIT was $105.3 million. This is reported EBIT adjusted for $71.2 million of significant items, those being $17.8 million of losses from closed businesses, $2.8 million of restructuring costs relating to the cost-out program, $2.1 million of advisor costs, and the $48.6 million non-cash goodwill impairment.
Underlying net profit after tax was $51 million, with underlying EPS of $0.085 per share. Statutory EPS was negative $0.023 per share.
Reported EBIT, post the goodwill impairment
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