Insights

Accent (ASX:AX1) share price slides despite strong sales growth

Record results haven’t been enough to break Accent’s slump
The post Accent (ASX:AX1) share price slides despite strong sales growth appeared first on The Motley Fool Australia. –

The Accent Group Ltd (ASX: AX1) share price is slipping today despite the company posting record results for financial year 2021.

Accent released its FY21 earnings report after market close last night. Within them, the footwear retailer announced its FY21 sales had increased 19.9% compared to those of the prior financial year. Additionally, its earnings before interest and tax (EBIT) were also 19.3% higher.

Despite the good news, the Accent share price has been falling today. At one stage it was down 6.62%. However, Accent shares have since recovered somewhat and are now swapping hands for $2.27 apiece, a 2.99% drop from yesterday’s close.

Let’s take a closer look at how the company performed over FY21.

Accent’s FY21 earnings

Accent’s 12 months ended 30 June 2021 were incredibly productive. However, that hasn’t been enough to break the Accent share price’s downward trend.

Over FY21, Accent brought in $76.9 million in net profits after tax. That’s 38.6% more than it made in FY20. Additionally, its total sales equated to $1.14 billion, and its EBIT came to $242 million.

That’s particularly impressive considering, between all Accent’s retail stores, it experienced a total of 14 lockdowns in FY21.

The company also announced an 11.25-cent full-year dividend, up 21.6% on that of FY20.

Despite the seemingly outstanding performance, Accent’s stock has continued to slide. It has now fallen 18% since the beginning of August.

To make the drop even stranger, before today Accent hadn’t released any price-sensitive news since May.

The drop in the Accent share price may be related to the current Covid-19 outbreaks in Sydney and Melbourne. Accent warned its FY22 will be impacted by around $15 million due to the lockdown of Australia’s 2 largest cities. However, the impact will be greater if the outbreaks continue.

Accent share price snapshot

Despite Accent’s recent strong performance, its share price has been struggling on the ASX.

It has fallen 4% year to date. However, it has gained 39% since this time last year.

The post Accent (ASX:AX1) share price slides despite strong sales growth appeared first on The Motley Fool Australia.

Should you invest $1,000 in Accent Group right now?

Before you consider Accent Group, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Accent Group wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Accent (ASX:AX1) share price on watch following record FY21 results
Accent (ASX:AX1) share price down as market awaits FY21 earnings
How did the Accent (ASX:AX1) share price respond last earnings season?
The Accent Group (ASX:AX1) share price is down 9% ahead of this weeks earnings
Who’s starting the week off as the biggest mover on the ASX 300 today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!