Record results haven’t been enough to break Accent’s slump
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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.
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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.