Accent Group’s trading update showed deteriorating sales trends, with comparable sales turning negative since March 2025. As a result, 2H25e EBIT will be down 23%. We expect sales growth to be below cost growth again in FY26e resulting in EBIT of $102 million, down 7%. The concern is Skechers is mature and Platypus may decline. With issues in portions of the core business, execution risk is elevated. Positive comp sales are essential in a high cost growth environment and will need to recover to offset the growth in wages and rents.