The S&P/ASX 300 Index (ASX: XKO) is down 0.2% in morning trade today, and it's certainly not getting help from this tanking ASX 300 stock.
The free-falling company in question is Accent Group Ltd (ASX: AX1).
Shares in the footwear and clothing retailer closed yesterday trading for $1.66. At time of writing on Friday, shares are changing hands for $1.41 apiece, down 15.1%.
That gives the company a current market cap of around $850 million.
Today's selling action follows the release of Accent's full year FY 2025 results for the 12 months to 29 June.
Here's why investors are heading for the exit.
Image source: Getty Images
Why is the ASX 300 stock tumbling today?
The Accent share price is under heavy selling pressure after the company posted some underwhelming results.
The ASX 300 stock reported total sales of $1.62 billion for the full year, up a slender 0.6% from FY 2024.
Earnings went the other way, however, with earnings before interest, taxes, depreciation and amortisation (EBITDA) of $288.8 million down 1.6% year-on-year.
Margins also came under pressure, with Accent's gross margin of 54.9% down 0.85% from the prior year. The company said the decline was largely due to the "prevailing consumer and promotional environment", as consumers responded to value and discounts throughout the year.
On the bottom line, Accent's net profit after tax (NPAT) of $57.7 million declined 3.0% from FY 2024.
With profits down, management declared fully franked final dividend of 1.5 cents per share. That's down 66.6% from last year's final Accent dividend.
If you're looking to bank that passive income payout, you'll need to own shares at market close on 26 August. The ASX 300 stock trades ex-dividend on 27 August.
Turning to what happened on the ground, during the year, Accent opened 54 new stores and closed or divested 57 stores, with total store numbers (including websites) now at 892 stores.
And the company reduced its net debt by 18% over the year, reporting net debt of $100.0 million as at 29 June.
What did management say?
Commenting on the results that are pressuring the ASX 300 stock today, Accent CEO Daniel Agostinelli said "Accent delivered sales growth and profit, highlighting the strength of the Accent business model and the dedication of the entire Accent team."
He added:
Over the year, the company achieved 1.6% owned sales growth, opened 54 new stores, and entered into a long-term strategic partnership with Frasers Group to launch the Sports Direct business across Australia and New Zealand (ANZ). We also signed long-term distribution rights for Dickies and Lacoste.
What's next for the ASX 300 stock?
Looking ahead, the ASX 300 said it will continue to pursue "a range of growth opportunities" across its core banners and new businesses.
Accent is targeting high single digit earnings before interest and tax (EBIT) growth for FY 2026 (inclusive of the startup costs associated with Sports Direct).
Management said the outlook for H1 FY 2026 EBIT is for a similar level of EBIT to H1 FY 2025, and then earnings growth in the second half of the 2026 financial year.
With today's outsized fall factored in, shares in the ASX 300 stock are down 41.7% since this time last year.
