Why Adairs, Adbri, Magellan, and Reliance Worldwide shares are sinking

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and dropped deep into the red. At the time of writing, the benchmark index is down 1% to 7,043.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Adairs Ltd (ASX: ADH)

The Adairs share price is down 10% to $2.28. Investors have been selling this homewares retailer’s shares following the release of a disappointing full year result. Although Adairs reported a 12.9% increase in sales to a record $564.5 million, this couldn’t stop it from posting a 29.6% decline in net profit after tax. Management advised that its margins were impacted by higher supply chain costs and greater promotional activity.

Adbri Ltd (ASX: ABC)

The Adbri share price is down 17% to $2.21. This has been driven by the building materials company’s half year results release. Adbri reported an 8% increase in half year revenue but a 15% decline in statutory net profit after tax to $48.1 million. This was driven partly by extreme wet weather and higher supply chain costs.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has sunk 11% to $12.83. The catalyst for this has been the struggling fund manager’s shares trading ex-dividend this morning for its final dividend of FY 2022. Eligible shareholders can now look forward to receiving this 68.9 cents per share dividend next month on 6 September.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is down 7% to $4.19. This morning this plumbing parts company released its full year results and reported a 17% increase in sales to US$1.17 billion but a 3% decline in net profit after tax to US$137.4 million. The latter was a touch short of consensus estimates.

The post Why Adairs, Adbri, Magellan, and Reliance Worldwide shares are sinking appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares trading ex-dividend today
• Why is the Magellan share price slumping 10% today?
• Adairs share price sinks 4% despite record full-year sales
• Adbri share price tumbles 12% following a drop in profits
• Reliance Worldwide share price slumps 3% on ‘year of significant operational challenges’

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO and Reliance Worldwide Corporation Limited. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Reliance Worldwide Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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