Accent Group Ltd (ASX:AX1) 2025 Full Year Earnings Call Summary: Robust Sales and Strategic Insights

Financial Performance: Accent Group Ltd reported total sales of $1.6 billion for FY25, with EBIT at $110 million and a net profit after tax of $57.7 million, while gross margin decreased to 54.9%.

Store Expansion and Challenges: The company opened 54 new stores, bringing the total to 903, but also closed or divested 57 stores, facing challenges in the lifestyle footwear market.

Inventory and Cost Pressures: Inventory levels increased due to new store openings and stock in transit, raising concerns about potential discounting, alongside inflationary pressures affecting wages and rent.

Future Outlook: The company anticipates flat EBIT in the first half of FY26 with growth expected in the second half, supported by a strong pipeline of wholesale orders and the rollout of Sports Direct stores in the ANZ region.