In key news for Australian stocks, shares of the footwear retailer Accent Group Ltd (AU:AX1) slipped over 8.5% this morning after reporting a massive earnings decline in the first half of Fiscal 2024 and a decision to slash dividends. For the six months ending December 31, 2023, Accent posted a 27.6% year-over-year drop in after-tax profits, with sales falling 1.7% compared to the prior year.
Moreover, EBITDA (earnings before interest tax depreciation and amortization) fell 7.5% year-over-year. As a result, the company’s board cut the fully franked interim dividend by 29% to AU$0.085 per share.
More Details About Accent’s Results
The company reported solid sales for brands such as Skechers, The Athlete’s Foot, Hype DC, HOKA, Stylerunner, and Nude Lucy. Also, the retailer benefitted from stronger Black Friday and Christmas week sales during the six months.
On the B2B front, sales fell 25% year-over-year owing to sluggish demand in the wholesale business. The company opened 72 new stores in H1FY24 and ended the quarter with lower inventory levels as compared to the same period last year. The company aims to open at least 20 new stores in H2FY24.
Is Accent Group a Good Investment?
On TipRanks, AX1 stock has a Hold consensus rating based on one Buy versus three Hold ratings. The Accent Group Ltd. share price target of AU$2.02 implies 3.6% downside potential from current levels.
