Does Accent Group’s (ASX:AX1) Transparent MySale Losses Reveal a New Approach to Cost Discipline?

• Earlier this month, Accent Group Limited released updated earnings guidance for the 2026 financial year, forecasting first half EBIT in the A$55 million to A$60 million range and full-year EBIT between A$85 million and A$95 million, accounting for nonrecurring losses from closing its MySale operations.
• A unique aspect of this update is the explicit inclusion of nonrecurring losses tied to the MySale closure, providing a more transparent view of the company’s operational expectations and cost management.
• We’ll now assess how the incorporation of one-off MySale closure losses impacts Accent Group’s medium-term investment narrative.

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Accent Group Investment Narrative Recap

The core investment thesis for Accent Group rests on its ability to execute new store rollouts, strengthen sports and athleisure banners, and manage margins despite competitive pressures. The recent inclusion of MySale closure losses in FY 2026 guidance adds transparency but does not materially alter the fact that net margin trends and store expansion outcomes remain the most important near-term catalyst and risk. Of recent announcements, the August 2025 earnings guidance stands out as most pertinent: it foreshadowed high single-digit EBIT growth and ongoing expansion costs for Sports Direct, framing this new guidance and highlighting the group’s reliance on execution of store rollouts and stabilizing underperforming banners. On the other hand, investors should remain mindful of the ongoing risk posed by potential oversaturation or cannibalization from the planned store network expansion, as…

Read the full narrative on Accent Group (it's free!)

Accent Group's narrative projects A$1.8 billion in revenue and A$84.5 million in earnings by 2028. This requires 6.5% yearly revenue growth and a 46.5% increase in earnings from A$57.7 million.

Uncover how Accent Group's forecasts yield a A$1.21 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Twelve private investors in the Simply Wall St Community see Accent Group’s fair value anywhere from A$1.16 to A$5.90 per share. Given lingering risks to margin recovery from discounting and operational challenges, consider how different expectations among market participants could shape the company’s prospects.

Explore 12 other fair value estimates on Accent Group - why the stock might be worth just A$1.16!

Build Your Own Accent Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Accent Group research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Accent Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Accent Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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