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Investing.com - JPMorgan downgraded Accent Group (ASX:AX1) from Overweight to Neutral on Monday, slashing its price target to AUD1.15 from AUD1.70, representing a 30% reduction.
The downgrade comes as the footwear retailer continues to face challenging operating conditions through the first half of fiscal year 2026, with ongoing gross margin pressure and weaker like-for-like sales trends.
Accent Group has lowered its FY26 EBIT guidance to between AUD85-95 million, approximately 23% below current consensus and prior guidance of around AUD117 million.
JPMorgan noted persistent gross margin pressure, with margins declining 160 basis points year-over-year through the first 20 weeks of 1H26, alongside deteriorating like-for-like sales performance.
The investment bank remains cautious about Accent Group’s outlook, citing ongoing promotional intensity in the retail sector and elevated investment required for the company’s Sports Direct roll-out.
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