Accent Group shares tumble after downgrading FY26 earnings guidance
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More news: Shares in Accent Group fell in early trade after the company downgraded its half-year and full-year earnings guidance as higher fuel prices and a drop in consumer confidence contributed to a material impact in April.
Shares had fallen 8.86% to 56 cents at 11:23am AEST.
RBC Capital Markets analyst Jackie Moody expressed concerns that the update only encapsulates weaker-than-expected trading conditions in a single quarter, adding that should these conditions persist into FY27, there will be further downside risk to current consensus forecasts.
Moody holds a sector perform rating with a price target of $1.30.
Accent Group downgrades earnings guidance on deteriorating consumer confidence
The news: Accent Group reported total owned sales increased by 7.1% for the second half of FY26 compared to the prior corresponding period, however flagged that higher fuel prices and a drop in consumer confidence contributed to a material impact in April.
The numbers: Like-for-like retail sales were 1% lower than the previous corresponding period, while the gross margin for the continuing business was 54.2% lower from the prior year.
Accent has downgraded its half year earnings before interest and tax (EBIT) guidance to a range of $23 million to $28 million. Full-year EBIT is now forecast to be between $79.5 million and $84.5 million.
The context: Accent stated that although trading to the end of March was in line with its prior guidance, sales and gross margins in April were impacted by higher fuel prices and a significant deterioration in consumer confidence. These factors resulted in the company downgrading its trading outlook for May and June.
This also comes after the company received notices that it was suspected of contravening trading activities from 23 May 2025 to 10 June 2025, however Accent noted that no charges have been laid.
The sources: ASX, RBC analyst note
