TRADING UPDATE23 NOVEMBER 2018Accent Group Limited (ASX: AX1)...

TRADING UPDATE23 NOVEMBER 2018Accent Group Limited (ASX: AX1) announced today that it now expects EBITDA for H1 FY19 to bebetween 15%-20% ahead of the same period last year.The full year FY18 results announcement in August 2018 outlined that Accent Group was targetingmid-single digit EBITDA growth in FY19 through:• Low single digit LFL store growth, continued strong growth in digital and growth from newstores.• Continued margin improvement through increasing vertical brands penetration, newemerging brands and reduced discounts (which will primarily benefit H1).• The Athlete’s Foot new corporate store acquisitions program which is expected to beEBITDA neutral for FY19 after implementation costs.Overall, results for the first 20 weeks of FY19 have been materially stronger than expected.This is as a result of:• LFL sales after the first 20 weeks up 2.5% on last year and on track to our expectations. TheGroup has remained focused on the strategy of “No Lazy Retailing”, removing discountdriven core promotional activity.• Digital growth being stronger than expected, up 88% on prior year,• Increased new store openings, with more than 40 stores now targeted to open in FY19against 30 stores originally planned. New stores opened to date are trading ahead ofexpectations.• Stronger gross margin than expected, more than 300bp ahead of the prior year YTD, withLFL margin dollar growth tracking higher than LFL sales growth.• The buyback of The Athlete's Foot stores is ahead of plan with 39 stores now undercorporate ownership. We now plan to have around 50 corporate stores by the end of FY19.Accent Group CEO, Daniel Agostinelli, said “We are delighted with the results achieved for the first20 weeks of FY19. Whilst we still have a significant proportion of the H1 and annual EBITDA toachieve in the key Christmas and back to school periods through December and January, ouroperational plans are well set for this trading period. Based on the strong results achieved to date inH1, and if LFL sales continue to track at low single digit growth, EBITDA for H1 is now expected to bebetween 15%-20% higher than the prior year. The outlook for H2 FY19 has not changed and the

Group is still targeting mid-single digit EBITDA growth for the second half. In H1, marginimprovement has been a key driver of the increased profit guidance. In H2, we do not expect thesame margin impact as we will be cycling through an already improved margin from the second halfof the prior year.”