Australian footwear and fashion company Accent Group has reported a 40 per cent slip in its net profit after tax (NPAT), hitting $28.1 million for the first half of FY26.
This comes alongside a 2.3 per cent lift in total sales to $865.2 million, with owned sales (excluding The Athlete’s Foot franchises) up 5.7 per cent.
The group – which manages the likes of Hoka, Glue Store and Platypus – also reported a drop in its reported earnings before interest and tax (EBIT). For the first half of FY26, group EBIT was $56.5 million, which is down from $80.6 million in the first half of FY25.
According to Accent Group, the result is in line with the EBIT guidance range of $55 million to $60 million provided in its late November 2025 trading update. Pro-forma EBIT from continuing business for the first half of FY26 was $72.7 million.
Alongside the total owned sales lift of 5.7 per cent for H1 FY26, the company delivered like-for-like retail sales growth of 0.9 per cent, with the first quarter down 1.7 per cent and the second quarter of 2.8 per cent.
“In a promotional trading environment, growth was achieved across many of our businesses,” Accent Group CEO Daniel Agostinelli said.
“The Athlete’s Foot, Hoka, Merrell and Nude Lucy all experienced strong growth, pleasingly Platypus and wholesale sales were ahead of prior year with wholesale forward orders also ahead of prior year into the second half of FY26. Cost of doing business (CODB) and inventory continue to be well managed.”
Accent Group also reported a gross margin of 54.3 per cent, down by 260 basis points compared to the first half of FY25. This was reportedly impacted by the noted promotional environment, as well as a “disciplined approach” to inventory management and the year-on-year decline in the AUD/USD exchange rate.
Cost of doing business (CODB) as a percentage of sales was 44.3 per cent, which is down from 44.7 per cent in the prior period.
During H1 FY26, the group opened 27 new stores and closed 21 stores, including 12 loss-making Glue and Vans stores. Total store numbers now sit at 898.
Accent Group’s wholesale sales also improved by 9.4 per cent in the first half, led by growth in Hoka, Lacoste and Ugg. The company had signed on Lacoste in mid-2025.
The trading update today also included the wrap-up of operations for its Glue Store subsidiary, which is covered in a separate story by Ragtrader today.
That comes alongside the wind-up of MySale.
Meanwhile, the business is making headway with its Sports Direct rollout thanks to a partnership deal Accent made with Frasers Group in the United Kingdom.
The first Sports Direct store was opened at Fountain Gate in Victoria in November last year. A further two stores are planned to open in the second half of FY26, with a third store signed and scheduled for opening in H1 FY27.
Accent Group noted it is in active negotiations on a further nine store locations, supporting the long-term target of at least 50 stores over the next six years.
Trading to date at the Sports Direct Fountain Gate store has been "pleasing", providing confidence in the growth plan.
For the whole Accent Group business, total owned sales for the first eight weeks of the second half lifted by 7.1 per cent, with like-for-like flat on the prior period.
Agostinelli said back-to-school sales were a record this year, which boosted the jump.
“The recent strengthening in the AUD/USD exchange rate is expected to provide Gross Margin support at the back end of FY26 and improvement into FY27,” he added.
“I am pleased with the early trade from Sports Direct, the launch of Lacoste and the forward pipeline of wholesale orders. Recent refinancing and facility extension reinforces the strength of the balance sheet and supports ongoing investment in growth.
“The team remains focused on driving profitable sales, tightly managing controllable costs and executing our key growth initiatives.”