Accent Group and its CEO Daniel Agostinelli are facing an investigation from the Australian Securities and Investments Commission (Asic) over potential insider trading.

The footwear and lifestyle retailer said in a statement that it had been required to provide all reasonable assistance in connection with the investigation. 

No charges have been laid against any person and there are no allegations against the company, the statement reads.

Asic is investigating suspected contraventions of the Corporations Act 2001 in relation to trading the securities of the company between May 23 and June 10 last year. Aside from Agostinelli, non-executive director Michael Hapgood and another senior employee are also being probed.

Accent said Agostinelli’s on-market share sales were pre-approved by former chairman David Gordon at the time. It added that Agostinelli has the full support of the board in his ongoing role as CEO.

Meanwhile, Hapgood has told the board he did not trade shares during the period in question.

Middle East war dented sales and margins

In a trading update, Accent said the escalation in geopolitical tensions, which contributed to higher fuel prices and a deterioration in consumer confidence, had adversely impacted sales and gross margin in April.

Total owned sales for the first 18 weeks of H2 rose 7.1 per cent on a reported basis but fell 1 per cent on a like-for-like basis. Gross margin for the continuing business decreased by 80 basis points to 54.2 per cent.

The company said the current macroeconomic conditions are unlikely to abate in the short term. As a result, it expects EBIT to be $23 million to $28 million for the second half and $79.5 million to $84.5 million for the full year.

The H2 guidance range includes approximately $2 million of restructuring costs as part of a new cost-out program.

The company previously recorded a 40.5 per cent drop in net profit after tax in the first half.