Accent Group (AX1)
What do you think of AX1. The most recent results were nothing flash and yet the price is slowly rising. Is this a case of price rise into Xmas shopping period? Considering my options. Thanks
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Answer
Hi Robert,
Footwear retailer ‘Accent Group (AX1) struggled after its underwhelming FY24 result in late August which saw NPAT fall -33% to $59.5 million and EBIT down 20.5% to $110.4 million. Following the profit decline, the board cut its dividend by over 25% to 13 cents per share, but the stocks still yielding ~5.7% ff.
The stock has followed the sector/market higher but its underperformed Nick Scali (NCK), Super Retail (SUL) and JB Hi-Fi (JBH) depending on what end of the scale you look.
- AX1 looks “ok” but it’s not our preferred choice for exposure to discretionary retail.
