Accent Group (AX1.AX): FY26 Conference Call Key Points

Research evidence excerpt

Equity Research

21 August 2026 | 11:44AM AEST

Accent Group (AX1.AX): FY26 Conference Call Key Points

Our key points from the FY26 conference call are below:

n

May and June conditions were difficult: Traded well through end-March, but

the macro and geopolitical environment ramped up in April impacting

April/May/June and performance wasn’t where they wanted even cycling a weak

pcp.

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7-week trading update, Sports and Nude Lucy positive LFL: Sport category

positive LFL and remains resilient. Nude Lucy also positive. Implies lifestyle

banners running worse than -2%.

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Sales into August improved further over July, but still negative: Trade has

improved vs. Q4 FY26 on both sales and margin.

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FY27 ~$10m EBIT improvement driven by 1) ~$6m from TAF franchise

reacquisitions; 2) ~$2m from store portfolio optimisation; 3) ~$2m from new

stores.

n

Sports Direct run rate continues to lift from $15m as Miranda has opened and

online has grown.

n

Gross margin improvement in July aided by FX. FY27 $20m FX benefit would

equate to >100bps GM uplift; $10m would be <100bps.

n

Promotional intensity unchanged: has been high for a while, no step-up but no

James Leigh, CFA

Goldman Sachs Australia Pty Ltd

Peter Marks

+61(02)9321-8846 |

Goldman Sachs Australia Pty Ltd

Rayanne Haidar

+61(2)9321-8739 |

Goldman Sachs Australia Pty Ltd

abatement. Customer continues to chase value.

n

$10-15m net cost out framed against 0-2% LFL assumption: Mgmt will not

bank the full $10-15m at EBIT if comps continue at -2%. Fixed cost inflation is

assumed at high-4% for frontline. Willing to go harder on cost-out if conditions

persist. Youth employment cost impact ~$5m over three years, factored into

plans.

n

Sports Direct incremental EBIT drag of ~$4-6m not unreasonable: Total FY27

investment guided at $15-20m for FY27.

Price Target Risks and Methodology - Accent Group

Valuation methodology: We are Buy-rated on AX1 with a 12m TP of A$0.85 based

on a 50/50 blend of a 10-year DCF and an EV/EBIT multiple, in line with our

coverage. Our DCF valuation assumes a WACC of 9.9% and a terminal growth rate of

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