Accent Group faces earnings downgrade and ASIC probe

Accent Group (ASX:AX1) updated the market on a challenging second half for the 2026 financial year, citing a downturn in consumer sentiment and an ongoing investigation by the Australian Securities and Investments Commission.

While total owned sales for the first 18 weeks of H2 FY26 rose by 7.1%, like-for-like retail sales dipped by 1% compared to the previous year.

The company noted that trading remained steady until late March, after which escalating geopolitical tensions drove up fuel prices and severely dampened consumer confidence.

The macroeconomic headwinds, which the company expects to persist, led to a disappointing April performance.

Accent Group has revised its H2 FY26 EBIT guidance to between $23 million and $28 million, bringing the full-year EBIT forecast to a range of $79.5 million to $84.5 million.

The outlook includes $2 million in restructuring costs tied to a forthcoming cost-out programme intended to bolster FY27 savings.

Accent Group confirmed it is assisting ASIC with an investigation into the trading of its securities between May 23 and June 10, 2025.

The regulator is examining potential contraventions of the Corporations Act 2001, specifically regarding section 1043A.

While no charges have been laid and ASIC has clarified the notices are not an indication of legal contravention, the company has been required to produce documents and provide "all reasonable assistance".

At the time of reporting, Accent Group’s share price was $0.56.