Last August, we covered an ASX 300 retail stock that surged 19% after dropping its full-year earnings for the 2023 financial year.
As we reported at the time, this ASX 300 stock revealed that its full-year revenues surged by 7.7% over FY23 to $1.57 billion, while earnings before interest, taxes, depreciation and amortisation (EBITDA) rocketed 39.6% to $289 million.
The real kicker was net profits after tax (NPAT), which ballooned 182% to $89 million. Oh, and there was a 22% hike to the company's final dividend too.
This star performer from 2023 was none other than ASX 300 footwear retailer Accent Group Ltd (ASX: AX1).
Yep, after these results were reported, Accent shares shot up by 19% at one point.
Well, this company is scheduled to drop its latest earnings report next week on Friday 23 February. This time it will be covering the first half of the 2024 financial year. Many investors might be wondering if they're in for another rocket ship ride this time around.
Is this ASX 300 stock set to surprise investors again?
Well, it's hard to say. We can't know what Accent will tell ASX 300 investors next week until it does, of course. However, the company did deliver a trading update last November that seemed to signal to investors that a lowering of expectations would be prudent.
On 17 November, Accent told shareholders that total sales were "flat" over the first 19 weeks of the 2024 financial year compared to the prior year's numbers. The company's gross margins over the period got a similar description.
Accent also warned that its costs compared to sales were rising as well, thanks to "inflationary pressures on costs and weaker like for like sales".
When this trading update was released, Accent shares fell by almost the same amount that they rose after the August earnings report.
Our chief investment officer, Scott Phillips, likes to say that earning season is really 'expectations season'. That's because what moves ASX 300 stock prices during earnings season are usually the reports that surprise investors.
Accent has certainly dampened expectations for next week's report. We'll just have to wait and see what happens.
