Why did Accent Group’s H1 profit fall 40%?

Profit fell to A$28.1m as operating costs rose and Glue Store lost A$8.4m in the half. Wage inflation, occupancy, and logistics weighed on margins. While revenue increased 5% to A$816.9m, the mix and cost pressure offset growth. Management is exiting Glue to remove a structural drag.

How will the Glue Store closure affect results?

In the short term, expect one‑off restructuring charges for lease exits, redundancies, and inventory write‑downs, which can weigh on statutory profit. Over time, removing loss‑making stores should lift run‑rate margins and simplify operations. We’ll watch cash exit costs and any working‑capital release from stock clearance in H2.

Is the dividend sustainable at current levels?

The trailing yield is about 7%, but the payout ratio near 98% is high. Sustainability hinges on H2 trading, restructuring costs, and cash generation. If sales growth and margins improve, pressure eases. Until then, investors should expect a cautious stance on distributions and monitor cash flows closely.

What near‑term catalysts could move Accent Group stock?

Key drivers are the size and timing of restructuring charges, early‑H2 sales momentum (+7% reported), gross margin mix as Lacoste and HOKA scale, and winter footwear demand. Clear closure progress and steady comps could support a re‑rating, while slower execution or weak margins may cap the shares.

Global Market Insights

AX1.AX Stock Today: Glue Store Exit, H1 Profit -40% – February 26

ByDanny Kontos February 26, 2026February 26, 2026

Accent Group stock is in focus today after management moved to exit Glue Store and posted mixed first‑half numbers. Accent Group (AX1.AX) reported revenue up 5% to A$816.9m, but after‑tax profit fell 40% to A$28.1m on higher costs. Glue Store booked an A$8.4m H1 loss, prompting plans to shut or sell all 16 stores by fiscal year‑end. Early H2 sales are up 7%, and the group is leaning harder into Sports Direct, Lacoste, and HOKA. We outline what this means for investors, including likely restructuring charges and trading levels.