Accent Group has revised its earnings expectations downward following a period of challenging trading conditions. Heavy discounting and subdued sales figures in the initial months of the 2026 fiscal year have placed pressure on the company’s financial performance. Accent Group is a retailer and distributor of performance and lifestyle footwear, and apparel. They operate across multiple brands and channels in Australia and New Zealand.
For the first 20 weeks of the fiscal year, total group-owned sales increased by 3.7 per cent. However, like-for-like (LFL) retail sales experienced a slight decline of 0.4 per cent. October showed a minor recovery, with LFL sales edging up by 0.4 per cent. The company reported that its year-to-date gross margin was 160 basis points lower compared to the previous year, attributing this to a highly promotional retail landscape.
Despite managing costs and inventory in line with projections, Accent Group’s earnings have been affected by weaker top-line performance and margin compression. The company now anticipates first-half earnings before interest and taxes (EBIT) to be in the range of $55 million to $60 million. This figure includes losses incurred from the closure of the MySale business, which Accent Group is discontinuing after recording $3.48 million in EBIT losses to the end of October. Full-year EBIT is projected to be between $85 million and $95 million, contingent on achieving second-half EBIT of $30 million to $35 million.
In other news, Accent Group has extended its distribution agreement with Skechers until 2035 and its HOKA agreement until 2030. The company will discontinue its Dickies distribution agreement following a change in brand ownership.
