Accent Group Ltd reported underlying earnings before interest and tax of AUD 105.3 million for the 52 weeks ended June 28, 2026, as total sales rose 0.9% year-on-year to AUD 1.63 billion.
Statutory net loss after tax widened to AUD 13.8 million from a AUD 7.8 million profit in FY2025, driven by a non-cash goodwill impairment of AUD 48.6 million. Underlying earnings per share stood at AUD 0.085, while statutory EPS was negative AUD 0.023 per share. The company declared a final fully franked dividend of AUD 0.0125 per share, bringing total FY2026 dividends to AUD 0.045 per share, down from AUD 0.07 in FY2025.
Owned retail sales increased 4.4% to AUD 1.4 billion, while wholesale sales surged 10.8% to AUD 172 million. Total owned sales, excluding exited businesses, rose 4.7% to AUD 1.53 billion. Like-for-like retail sales declined 0.5% for the full year, with Half 2 down 2.0% following a 0.9% gain in Half 1.
Gross margin narrowed to 54.1% from 54.9% in FY2025, with currency movements pressuring margins by an additional 40 basis points. Cost of doing business improved to 45.6% from 46.6%. EBITDA fell to AUD 278.9 million from AUD 288.8 million, while reported EBIT before goodwill impairment reached AUD 82.6 million, exceeding guidance.
The company reduced its store footprint by 16 stores to 876 locations, closing 59 stores including 22 Glue locations and exiting Herschel and Superga distribution. Portfolio simplification efforts removed approximately AUD 17.8 million in annualized losses. Net debt improved by AUD 8.6 million to AUD 91.4 million, with a leverage ratio of 1.18 times.
For FY2027, Accent Group expects net cost savings of AUD 10 million to AUD 15 million, with up to AUD 20 million in gross margin upside from FX hedging. The company targets at least AUD 1.9 billion in sales by 2030, a 9%+ EBIT margin, and 950 stores. Shares fell 7.59% to AUD 0.73 following the results.
