In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a subdued note. At the time of writing, the benchmark index is down 0.3% to 6,828.7 points.
Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:
AVITA Medical Inc (ASX: AVH)
The AVITA share price is down 10% to $6.28 following the release of its second quarter update. The regenerative medicine company reported a 57% increase in revenue to $5.1 million and an almost 90% improvement in its net loss to $5.6 million. While this was positive, management’s commentary appears to have spooked investors. It noted that almost 50% of its revenue comes from 20 accounts with physicians and hospitals. And as these accounts are susceptible to the effects of COVID-19, it was not in a position to provide guidance.
Baby Bunting Group Ltd (ASX: BBN)
The Baby Bunting share price is down 4% to $5.40 following the release of its half year results. Thanks to a 15% increase in comparable store sales and a 95.9% increase in online sales, the baby products retailer delivered a 16.6% increase in total sales to $217.3 million. And following a 41-basis points expansion in its gross margin, the company recorded a 43.5% increase in pro forma net profit after tax to $10.8 million. While this was undoubtedly strong, the market was expecting even stronger growth.
Kathmandu Holdings Ltd (ASX: KMD)
The Kathmandu share price is down 2.5% to $1.21. The retail company’s shares have come under pressure today following the release of an update on its first half performance. For the six months ended 31 January, the company achieved a 12% increase in half year group sales. However, the prior corresponding period only included a three-month contribution from its Rip Curl business. Sales from the Kathmandu business were down 30% on a same store basis.
Webjet Limited (ASX: WEB)
The Webjet share price is down 3.5% to $4.67. Webjet and a number of travel shares are trading lower today amid speculation that Melbourne is going to go into a five-day lockdown to stop the spread of COVID-19. This would be another blow for the recovering travel market.
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Returns as of 6th October 2020
More reading
- The AVITA Medical (ASX: AVH) share price plummets almost 6% in early trade
- Why the Baby Bunting (ASX:BBN) share price is tumbling 10% lower
- Why the Kathmandu (ASX:KMD) share price is in focus
- Here are the 10 most shorted shares on the ASX
- To short or not to short? GameStop (NYSE:GME) ripple effect endures
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended Avita Medical Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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