A leading footwear retailer at the centre of a bruising takeover battle has posted its first-ever unprofitable year after more than two decades as a public company.
Accent Group reported a bottom-line loss of $13.8 million for the 52 weeks to June 28, after making a $57.7 million profit in 2024/25.
The company behind Platypus, Skechers, The Athlete’s Foot, Stylerunner, Nude Lucy and Hype DC footwear chains had until Friday maintained an unbroken streak of annual profitability, including during the 2008 global financial crisis and the COVID-19 pandemic.
The loss came after Accent Group said it would write off $48.6 million in goodwill after reviewing a recent drop in sales. Its underlying profit, which excludes that impairment, was $51 million.
The group, which is also the Australian wholesaler for Hoka, Vans, Dr Martens and other brands, had total sales of $1.64 billion, up from $1.62 billion a year ago.
But like-for-like sales were down 0.9 per cent after dropping by two per cent in the second half of the year.
It’s been a tough time for retailers, with consumer confidence dropping significantly in the June quarter amid escalating geopolitical tensions, chief executive Daniel Agostinelli said.
Promotional intensity has been high, challenging margins.
“Certainly, the customer’s chasing value,” he added.
“Every other week, someone in our segment is having a sale and providing product, and we’re making sure we compete.”
Accent Group has been cutting costs by closing 59 stores and laying off 100 staff, mostly back-office personnel.
It also opened 43 new stores during 2025/26, leaving it with 876 across Australia and New Zealand at year-end, with 102 stores being flagged for review as they come up for lease renewal.
The company launched the British sporting goods brand Sports Direct in Australia in November under a long-term agreement with the UK’s Frasers Group, but that turned into a significant headache for Accent Group after Frasers launched a hostile takeover in June.
Accent Group has spent $2.1 million on adviser costs related to Frasers’ on-market takeover proposal, which expires on September 30.
It has also opened three physical Sports Direct stores in Australia plus a website, with online sales outperforming expectations amid excitement for the FIFA World Cup.
The company hopes to open four more Sports Direct stores by December.
RBC Capital Markets analyst Wei-Weng Chen said the results were “messy” but consistent with happenings at the company.
But after working through a large number of adjustments, it appeared the result was at the top end of guidance, Mr Chen said.
Shareholders seemed disappointed, however, with Accent Group shares dropping 9.5 per cent to 71.5 cents in afternoon trading.
Accent Group declared a final dividend of 1.25 cents per share, taking the total for the year to 4.5 cents.
Mr Chen viewed the continuation of dividend payments as imprudent given the group’s balance sheet and capital requirements.
The company’s net debt hit $141 million at year-end, from $100 million a year ago, with gross borrowing up from $140 million to $214 million.
Accent Group listed on the stock exchange in 2004 under the name RCG Corp, before being rebranded in 2017.
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