Why City Chic, Flight Centre, Perpetual, and Woolworths shares are sinking

The S&P/ASX 200 Index (ASX: XJO) is having a strong day on Thursday. In afternoon trade, the benchmark index is up 0.7% to 7,046.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are sinking:

City Chic Collective Ltd (ASX: CCX)

The City Chic share price has crashed 25% to $1.85. This morning City Chic released its full year results and revealed a 39% increase in revenue to $369.2 million and a modest increase in net profit after tax to $22.3 million. However, taking investors by surprise was the almost tripling of its inventory position and its negative cash flow.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price is down 5% to $16.47. Investors have been selling this travel agent’s shares following the release of its full year results. Flight Centre reported a 154% increase in revenue to $1 billion and an underlying loss after tax of $272.6 million. While this was in line with expectations, its performance in the Americas appears to have spooked investors. Goldman Sachs described its performance in the region as a “disappointment.”

Perpetual Limited (ASX: PPT)

The Perpetual share price is down 8% to $27.91. Investors have been selling this fund manager’s shares after it announced a new takeover approach for rival Pendal Group Ltd (ASX: PDL). Perpetual has offered one share and $1.976 for every 7.5 Pendal shares owned. This equates to an offer of $6.54 per share. Some investors appear to believe the company is overpaying.

Woolworths Group Ltd (ASX: WOW)

The Woolworths share price is down 4% to $35.99. This follows the release of the retail giant’s full year results for FY 2022. Woolworths reported a 9.2% increase in sales to $60,849 million and a modest 0.7% lift in net profit after tax to $1,514 million. This was largely in line with consensus estimates. A soft start to FY 2023 could be weighing on its shares.

The post Why City Chic, Flight Centre, Perpetual, and Woolworths shares are sinking appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the latest Woolworths dividend
• Corporate Travel has resumed paying them, so when can we expect Flight Centre dividends?
• Woolworths share price wilts today amid ‘volatile and challenging’ outlook
• Flight Centre shares fall back to earth after $378 million loss
• Pendal share price soars 15% on takeover news

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group 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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