• Total Group owned sales up 3.7% for first 20 weeks of FY26
• Like-for-like retail sales down 0.4%, but up 0.4% in October
• EBIT expected in range of $55M-$60M for H1 FY26, $85M-$95M for full year

Accent Group Limited (ASX: AX1) has provided an update on trade for the first 20 weeks of FY26. Total Group owned sales, including wholesale sales and sales from new stores, are up 3.7% compared to the same period last year. However, like-for-like retail sales are down 0.4%. In October, like-for-like sales were up 0.4%. The company notes that retail market conditions remain challenging, with ongoing promotional activity. The sports category, particularly running and performance footwear, has performed well, but lifestyle footwear sales have been soft and below expectations. Wholesale sales are ahead of the prior year, with forward orders remaining strong into the second half of FY26. The company's cost of doing business and inventory continue to be well managed and in line with plan. Based on the lower-than-expected like-for-like sales and gross margin, EBIT for H1 FY26 is expected to be in the range of $55M-$60M, inclusive of non-recurring losses associated with the closure of the MySale operations. For the full year, EBIT is expected to be in the range of $85M-$95M. The company has decided to discontinue the MySale business, which was acquired in May as part of a strategic transaction with Frasers Group plc. The operations will be wound down, with closure expected in early Q3 FY26. The company has also extended its distribution agreements with Skechers and HOKA, but has decided to discontinue the non-material Dickies distribution agreement due to a change in ownership. The company is pleased to report the successful opening of the first Sports Direct store in Australia, with a further 3 stores planned for the remainder of FY26 and a target of at least 50 stores over the next 6 years.

EBIT expected in range of $55M-$60M for H1 FY26 and $85M-$95M for full year FY26.

The company expects to open a further 3 Sports Direct stores in the remainder of FY26, with a target of at least 50 stores over the next 6 years.