Australian footwear and apparel retailer Accent Group Ltd. reported a statutory net loss of A$13.8 million for the 52 weeks ended June 28, 2026, as the company executed a strategic reset amid retail headwinds. Underlying earnings before interest and tax stood at A$105.3 million, while total sales including franchisees reached A$1.6 billion, a 0.9% increase on the prior year.
Owned retail sales rose 4.0% to A$1.4 billion, supported by a 10.8% surge in wholesale sales to A$172 million. However, gross margins declined to 53.1%, with the underlying rate at 54.1%, down from 54.9% in FY25. The company recorded a A$48.6 million non-cash goodwill impairment, primarily related to closed businesses. Underlying net profit after tax was A$51.0 million, translating to underlying earnings per share of 8.5 cents.
Accent Group reduced its store network from 892 to 876 locations, closing loss-making operations including Glue and OzSale, exiting distribution agreements for Herschel, Superga and Dickies, and shuttering 17 Vans stores due to unachievable rental terms. The company opened 43 new stores, with growth concentrated in Hoka, Skechers, Nude Lucy, Lacoste and Sports Direct. The Athlete’s Foot (TAF) buyback program expanded corporate-owned stores to 132, up from 12 in FY2017, with 28 remaining franchises.
The strategic reset includes a A$40 million gross cost savings target through FY28, with A$30 million in savings actioned for FY27. CEO Daniel Agostinelli described the portfolio decisions as "difficult but necessary" to streamline operations and exit underperforming segments. Finance Director Matthew Durbin noted the company "feels as though the business is at the bottom of the cycle."
Capital expenditure totaled A$27.2 million for 17 TAF buybacks in FY26, alongside A$12.3 million for the first three Sports Direct stores. Total strategic growth investments reached A$39.5 million, with an additional A$10.2 million consumed by closed businesses. FY27 capex is projected at A$30 million for business-as-usual, A$15 million for TAF reacquisitions and A$15–20 million for Sports Direct expansion.
Early FY27 trading showed total owned sales excluding closed businesses up 3.2% in the first seven weeks, though like-for-like retail sales declined 2.0%. The company maintained its dividend payout ratio target of 60–80% of NPAT excluding non-cash items, declaring a final dividend of 1.25 cents per share and total FY26 dividends of 4.50 cents, down from 7.0 cents in FY25. Net debt increased from A$100.0 million to A$141.0 million.
