Accent Group (AX1.AX): First Take: In line result, but negative LFL momentum

Research evidence excerpt

Equity Research

21 August 2026 | 10:15AM AEST

Accent Group (AX1.AX): First Take: In line result, but negative LFL

momentum

GS View: AX1 has reported FY26 EBIT (pre goodwill impairment) of $82.6m in line

with the guidance range of $79.5-$84.5m and broadly in line with GSe/VA Cons of

$81/82m. Trading update the key focus with the first 7 weeks of FY27 showing total

owned sales +3.2% but LFL retail sales -2.0% (vs. VA Cons LFL -1.5% for 1H27), with

July GM% up on prior year. We expect the stock to trade slightly weak today.

James Leigh, CFA

Key Points

+61(2)9321-8739 |

Goldman Sachs Australia Pty Ltd

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Goldman Sachs Australia Pty Ltd

Peter Marks

+61(02)9321-8846 |

Goldman Sachs Australia Pty Ltd

Rayanne Haidar

FY26 reported EBIT (pre goodwill impairment) of $82.6m in line with

guidance range of $79.5-$84.5m and broadly in line with GSe/VA Cons of

$81/82m. Compositionally, sales/GPM slightly weak vs VA Cons offset by better

cost mgmt.

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FY26 -0.5% LFL softer than VA/GSe. We estimate -0.5% LFL for FY26 (below VA

Cons 0%) implies -2% 2H26 LFL, a deceleration from -1% at May trading update.

This implies -~6% May/June despite comping ~-7% Jun in pcp.

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7wk trading update -2% LFL vs VA Cons -1.5% for 1H27. July GPM up on pcp

though unclear to us whether this excludes closed businesses in the pcp.

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Sports Direct has performed to plan. Planned FY27 $15-20m investment in

Sports Direct across capex for new stores, website, working capital, and pre lease

EBITDA CF.

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Outlook: No explicit FY27 EBIT guidance (as expected). Management framed

FY27 initiatives as designed to maintain an acceptable level of profit against a

backdrop of slightly negative LFL retail sales.

Exhibit 1: First take table

A$mn

Gross Revenue

COGs

Gross Profit

GPM

Act

1,527.0

-716.1

810.9

53.2%

FY26

Gse

1,542.7

733.7

832.7

54.0%

VA Cons

1,535.1

720.4

828.3

54.0%

YoY

4.7%

-208.9%

-1.0%

-298 bps

FY26

vs Gse

-1.0%

-197.6%

-2.6%

-82 bps

vs Cons

-0.5%

-199.4%

-2.1%

-80 bps

Operating Costs (inc D&A)

Operating income/(loss)

-728.3

82.6

-682.7

81.1

-678.4

81.7

12.9%

-25.0%

6.7%

1.9%

7.3%

1.2%

Net income/(loss)

34.8

36.0

34.6

-39.6%

-3.2%

0.7%

Excludes goodwill impairment

…