I’ve already looked at five of the best reports of ASX share reporting season, now I’m going to cover five of the bottom ones.
For some of them, it’s the numbers that they reported which was disappointing. For others, it was the market reaction that was the most telling and disappointing thing about it.
So, let’s get into them:
City Chic Collective Ltd (ASX: CCX)
City Chic is a leading ASX retail share in the plus-size space. The City Chic share price is down 36% since reporting.
While sales jumped 39% to $369.2 million, statutory net profit after tax (NPAT) only went up 4.7%. Cashflow sank to a loss of $51.9 million and its inventory position soared around $130 million to $195.9 million. This is “expected to normalise in FY23”.
It also said that Australian online sales “below last year” in the first two weeks, but has since performed well. The US Avenue website was “trading below” last year but now it’s showing week on week improvements.
Woolworths Group Ltd (ASX: WOW)
Woolworths was a strong performer during the first couple of years of COVID. But now it’s facing against locked down periods and inflation. Woolworths is suffering from higher costs and not every customer will be able to afford the increases.
FY22 net profit was virtually flat. It is now having to deal with a costly payroll review. Total sales in the first eight weeks of FY23 are down 0.5%.
The Woolworths share price is down 6% since mid-August.
Kogan.com Ltd (ASX: KGN)
Kogan is one of Australia’s biggest online retailers. But, the Kogan share price has dropped 70% over the past year. Gross sales only grew by 0.1% in FY22, while adjusted net profit was hit, statutory net profit was a loss of $35.5 million.
While the ASX share has done a lot of work on right-sizing the business, there is more work to be done. Can it regain its pre-COVID profit margins?
TPG Telecom Ltd (ASX: TPG)
TPG is one of the biggest telcos in Australia, but its result did not impressive investors. Underlying EBITDA (EBITDA explained) fell 1.4% to $872 million and average revenue per user (ARPU) was only up by 1%. Not much growth there. The TPG share price is down around 20% since reporting. Can 5G and the merger help growth?
Redbubble Ltd (ASX: RBL)
E-commerce ASX share Redbubble saw its share price sink 78% in the year to date. It’s down 44% in the last month. It reported a net loss after tax of $24.6 million and gross profit fell 18%.
The business is expecting higher costs in FY23, though revenue growth is expected. Will it be able to return to growth in the second half of FY23 and beyond, while benefiting from operating leverage?
