Accent Group (ASX:AX1) lowered its earnings before interest and taxes (EBIT) guidance for the second half of fiscal 2026 after higher fuel prices and deteriorating consumer confidence negatively impacted sales and margins in April, according to a Monday filing with the Australian bourse.
The company now expects fiscal second-half EBIT of AU$23 million to AU$28 million. In February, Accent Group guided for fiscal second-half EBIT of AU$30 million to AU$35 million, a previous filing showed.
As a result, the company now expects fiscal 2026 EBIT in the range of AU$79.5 million to AU$84.5 million, it said.
Accent Group is preparing a new cost-out program that targets "significant" cost savings in fiscal 2027. The program, scheduled to be announced at an investor day on May 13, will result in an expected AU$2 million of restructuring costs from April to June.
Additionally, the company said it received notices from the Australian Securities and Investments Commission for assistance in an investigation related to the trading of its securities in 2025. One notice requires the company to preserve communications concerning Chief Executive Daniel Agostinelli, non-executive director Michael Hapgood, and another senior employee.
The notices do not imply wrongdoing, and there are no allegations against the company, it said.
Accent Group shares fell about 9% in recent Monday trade and earlier hit a 52-week low.