Accent Group Ltd (ASX: AX1) shares fell as much as 18% to a two-month low of $1.26 after its full-year profit, dividend, and outlook missed market expectations. The stock last traded down 15% at $1.04.
The company reported FY25 net profit after tax (NPAT) of $57.7 million, 4% below consensus, as lower sales, softer gross margins, and higher net interest costs weighed on results. A final dividend of 1.5 cents per share fell short of the 2.3 cents expected.
Looking ahead, Accent guided to single-digit earnings before interest and tax (EBIT) growth in FY26, below Visible Alpha consensus forecasts of 11% growth. Store rollout guidance also underwhelmed, with at least 30 new stores planned (excluding Sports Direct), compared with expectations of 49.
Trading conditions also disappointed, with total sales up just 2% year-on-year in the first seven weeks of FY26, versus consensus expectations of 5.4%.
Citi analyst Sam Teeger said: “We think the market is likely to take today’s result negatively, not only because it missed FY25 expectations, but because a number of other retailers are reporting relatively much better trading updates. However, none of the other retailers reporting have the exposure to the lifestyle footwear segment which seems to be under pressure. We think a saving grace for Accent shareholders is that Frasers can’t exceed 26% ownership for the next three years.”