Accent Group has reported a slowdown in sales growth for the 2025 financial year, with sales increasing by just 1.5 per cent to $1.5 billion. The ASX-listed retailer, valued at $1 billion, operates over 900 stores across various chains, including Hype DC, The Athlete’s Foot, Platypus, Stylerunner and Nude Lucy. Accent Group specialises in the retail and distribution of performance and lifestyle footwear, apparel and accessories. The company also owns and operates a number of branded concept stores.
Earnings before interest and tax remained flat at $110.2 million, aligning with previous guidance issued in June. However, net profit experienced a 3.1 per cent decrease, falling to $57.7 million, impacted by increased promotional activity and non-recurring costs. The group had previously indicated challenging trading conditions in the latter half of the year, characterised by subdued sales growth in the lifestyle footwear market. Despite this, its sports-oriented banners, The Athlete’s Foot and HOKA, performed well, and Hype DC achieved a record year.
Gross margins were affected as consumers actively sought discounts. Consequently, the company has declared a lower final dividend of 1.5¢ per share, compared to 4.5¢ a year prior. The dividend is scheduled for payment on September 25.
Early trading in the new financial year shows improvement, with sales for the first seven weeks up 2 per cent compared to the previous year. Same-store sales have returned to growth. Accent anticipates first-half EBIT to be in line with last year, with growth expected in the second half. In April, Accent announced a strategic partnership with UK-based Frasers Group, which will see the Sports Direct chain launch its first Australian store at Fountain Gate mall in Victoria in November.