Accent Group shares dive on weak FY26 guidance
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More news: Accent Group shares tumbled in early trade after the Hype DC and Platypus owner issued softer-than-expected guidance for the 2026 financial year.
Accent shares were down 14.8% to $1.42 at 10:50am AEST, taking losses to 41.5% over the last 12 months.
RBC Capital Markets analyst Wei-Weng Chen noted that early trading in FY26 is tracking below market estimates. He said full-year guidance for "high single digit" EBIT growth is around 3% behind consensus forecasts.
Accent Group slashes dividend as full-year profit slides
The news: Sports shoes and apparel retailer Accent Group reported a 3.1% drop in full-year net profit after tax to $57.7 million, after the company flagged "lower-than-expected" sales during the 12-month period.
The numbers: Total sales ticked up 0.8% year on year to $1.62 billion. Accent's gross margin of 54.9% was 85 basis points below the prior year.
Earnings before interest and tax (EBIT) fell 0.2% to $110.2 million but came in at the top end of the company's guidance of $108 million to $111 million. The company is targeting "high single digit" EBIT growth in FY26, and "low single digit" like-for-like sales growth.
The retailer — which operates Hype DC, The Athlete's Foot and Platypus chains — confirmed full-year dividends of 7 cents per share, down from 13 cents per share last year.
The context: Accent said the full-year result was impacted by "the prevailing consumer and promotional environment", as consumers responded to value and discounts throughout the year.
The group said its roll out of Sports Direct stores is on track, after securing a 25-year deal with London-listed retailer Frasers in April.
Accent plans for an initial roll out of at least 50 stores over the next six years. At least four of these are expected to open in FY26, it said, with the first on planned to launch in Fountain Gate, Victoria in November.
The sources: ASX, RBC Capital Markets research
