Accent Group Revises FY26 EBIT to $79.5M - $84.5M with Restructuring Costs
Accent Group revises down FY26 earnings guidance following April sales hit from geopolitical tensions and announces ASIC investigation into past securities trading involving senior executives.
- 7.1% owned sales growth in H2 FY26 to early May
- 1% decline in like-for-like retail sales
- Gross margin down 80 basis points to 54.2%
- H2 EBIT guidance cut to $23–28 million including $2 million restructuring
- ASIC investigates securities trading involving CEO and director
Sales Growth Masks Margin and Confidence Challenges
Accent Group Limited (ASX:AX1) has reported a 7.1% increase in total owned sales for the first 18 weeks of the second half of FY26, covering 29 December 2025 to 3 May 2026. However, like-for-like retail sales slipped by 1% over the same period, highlighting underlying softness in comparable store performance. Gross margin contracted by 80 basis points to 54.2%, excluding the recently divested OzSale and Glue businesses.
This mixed performance follows a pattern of margin pressure and cautious growth that Accent has been navigating since FY25. The company’s sales growth builds on a series of modest gains and strategic expansions, including the rollout of Sports Direct stores in Australia and New Zealand, as previously outlined in their modest FY25 sales growth and margin pressure updates from late 2025.
Geopolitical Tensions Trigger Earnings Downgrade
Trading was in line with Accent’s prior guidance through to the end of March 2026. However, a sharp escalation in geopolitical tensions in late March sparked a surge in fuel prices and a notable drop in consumer confidence, which in turn weighed heavily on sales and gross margin during April. In response, Accent has revised its earnings before interest and tax (EBIT) guidance for the second half of FY26 down to a range of $23 million to $28 million.
This revised guidance includes approximately $2 million in restructuring costs linked to a new cost-out program that the company is preparing to announce. The restructuring initiative aims to deliver significant cost savings in FY27 and will be detailed at Accent’s upcoming Investor Strategy Day scheduled for 13 May 2026. The full-year EBIT forecast now stands at $79.5 million to $84.5 million, reflecting the ongoing challenges in the retail environment and the company’s proactive cost management.
ASIC Investigation into Past Securities Trading
Adding to the company’s challenges, Accent has disclosed it is cooperating with the Australian Securities and Investments Commission (ASIC) in an investigation concerning suspected contraventions of the Corporations Act related to securities trading between 23 May and 10 June 2025. The investigation involves CEO Daniel Agostinelli and Non-Executive Director Michael Hapgood, among others.
No charges or allegations have been made against any individual or the company itself. Mr Agostinelli’s share sales during the period were pre-approved by the former Chair of Accent, and the Board has expressed full support for his ongoing leadership. Mr Hapgood has stated he did not trade in the company’s securities during the relevant dates. The company is providing all reasonable assistance to ASIC, including document production and preservation of communications.
Bottom Line?
Accent’s near-term earnings face headwinds from external shocks and internal adjustments, making the upcoming Strategy Day critical for clarity on its cost-saving roadmap.
Questions in the middle?
- How will Accent’s new cost-out program reshape its cost structure and margins in FY27?
- What is the potential impact of the ASIC investigation on investor confidence and governance?
- Can Accent sustain sales growth amid ongoing geopolitical and economic uncertainties?
