Accent Group’s shares experienced a significant surge, climbing 18.9 per cent on Wednesday, following the release of its first-half results. A leading retailer of footwear and apparel, Accent Group operates various brands and also distributes international labels. According to Jarden analyst Ben Gilbert, the company’s first-half earnings before interest and taxes (EBIT) of $56.5 million aligned with both consensus estimates and the midpoint of its provided guidance. However, net profit fell 9 per cent below expectations.
Retail like-for-like sales demonstrated growth, rising by 0.9 per cent in the first half of fiscal year 2026, surpassing consensus forecasts. Total owned sales also exceeded expectations, coming in 3 per cent above anticipated levels, bolstered by a robust 9 per cent growth in wholesale activity. The company experienced some pressure on gross margins, which declined by 263 basis points year-on-year. This decrease was partly attributed to unfavourable foreign exchange movements. Despite these headwinds, underlying margin trends showed improvement, moderating to a decline of 130 basis points.
Gilbert noted that the initial performance of the Sports Direct stores had been encouraging. Accent Group is planning further store openings this year and is currently in negotiations for an additional nine locations. The company continues to focus on strategic growth initiatives to enhance its market position and overall financial performance.
