Accent Group (ASX:AX1) Navigates Challenging Retail Terrain Amid FY25 Trading Pressures

June 16, 2025 04:34 PM AEST | By Team Kalkine Media

Accent Group (ASX:AX1) Navigates Challenging Retail Terrain Amid FY25 Trading Pressures — Image source: Shutterstock

Market Trends and Performance Overview

Between March and early June 2025, the broader lifestyle footwear sector witnessed a downturn, affecting sales momentum. Accent Group reported a 1.0% decline in like-for-like sales across a 23-week period ending 8 June 2025. While this decline marks a slight improvement from the 2.5% drop reported during the prior corresponding period, it underscores continued demand softness.

To stay competitive, Accent Group implemented disciplined inventory strategies and operated within a more promotionally driven market. However, these tactics placed additional strain on gross margins. The company noted that gross margin percentage fell by approximately 80 basis points in the second half, compared to the same timeframe in the previous year.

Earnings Outlook

Looking ahead, Accent Group forecasts that its Group EBIT (post AASB16) for FY25 will land between $108.0 million and $111.0 million. This range reflects both the current market headwinds and the group’s measured approach to cost management and inventory control.

The company plans to release its full-year FY25 financial results on Friday, 22 August 2025, accompanied by an investor briefing. This will offer a more comprehensive view of performance metrics and management’s strategic direction heading into FY26.

Context Within Broader Market

The pressures faced by Accent Group are not isolated. Many companies on the ASX200—Australia’s benchmark index—are currently navigating similar headwinds amid changing consumer sentiment and cost-of-living pressures. For broader insights into market movements and company performances within the ASX200.

While short-term pressures are evident, Accent Group continues to respond proactively to evolving market conditions. Investors and market watchers will likely pay close attention to the upcoming results release for signs of stabilization or strategic pivots as FY26 approaches.

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