Shares in Accent Group sink after the retailer trims its earnings forecasts, blaming a sharp April hit from surging fuel costs and sliding consumer confidence. Investors react quickly, sending the stock down almost 9% to $0.56 in early trade and signalling concern that the pressure on household spending might not be a one‑month blip.
Accent Group reports total owned sales climbed 7.1% in the second half of FY26 compared with the same period a year earlier, but headline growth masks softer underlying trends. Like‑for‑like retail sales slipped 1% and the gross margin for the continuing business came in 54.2% below the prior year’s level, squeezing profitability.
Management now expects half‑year EBIT between $23 million and $28 million. Full‑year EBIT is cut to a range of $79.5 million to $84.5 million.
Trading up to the end of March aligned with previous guidance. April’s downturn forced a reassessment.
Company updates indicate April sales and margins deteriorated as higher fuel prices bit into customers’ discretionary spending and overall consumer sentiment weakened sharply. These conditions prompt Accent Group to lower its trading expectations for May and June, and the softer environment is already spilling into the final quarter of FY26.
Market commentary from RBC Capital Markets notes that the downgrade only captures one weak quarter and that a continuation of these trends into FY27 could pressure consensus forecasts further. RBC maintains a sector perform rating on the stock and sets a price target of $1.30 despite the near‑term headwinds.
Accent Group also acknowledges receiving regulatory notices over suspected contraventions in trading activities between 23 May 2025 and 10 June 2025, while stressing that no charges have been brought.
