The Novonix Ltd (ASX: NVX) share price has experienced a destructive share price crash of 80% during 2022. This dramatic drop in value has left many investors wondering if the crash is justified, and what could have caused such a steep decline.

One possibility is that Novonix’s financial performance has not lived up to expectations. Typically, a difference between market expectations and reality can only be sustained for so long before investors react.

The Novonix share price entered the year with its chest puffed out — parading a $10.52 price tag. Exactly 353 days later, the scenery isn’t as picturesque for the battery technology company. Today, shares in the same company are swapping hands at $1.73, as displayed above.

Is there a good reason for the punishment?

It’s worth taking a closer look at Novonix’s financial performance to see if this is a possible reason for the share price crash.

According to the company’s financial statements, Novonix has seen accelerating revenue growth in recent years. From FY20 to FY21, Novonix increased its revenue by 28% to $5.23 million. Amping up the growth, revenue grew by 61% in FY22.

However, the company’s bottom line has significantly deteriorated in the current year. In an environment where capital is becoming more expensive, it wouldn’t be a surprise if investors became less bullish on Novonix as its losses widened. Losses in FY22 totalled $71.44 million, taking a gigantic leap deeper from $18.08 million in the prior year.

Novonix finished the September ending quarter with $181.77 million of cash on hand. Although, with a worsening cash burn, shareholders might be concerned about future dilution if the company fails to navigate to positive cash flow with its current capital.

It’s also worth considering whether the overall market conditions played a role in Novonix’s share price crash. Novonix fits somewhere in between a tech share and a battery material share. While battery material producers — such as ASX lithium shares — have generally performed well this year, tech shares have had a miserable run.

Novonix share price walloping warranted?

So, is Novonix’s 80% share price crash justified? It’s difficult to say for certain without the benefit of hindsight. Even now, the company could appear richly valued given its trading at 102 times revenue for the trailing 12 months.

On the flip side, many non-financial achievements were obtained during the year. These include:

• Securing a graphite supply agreement with KORE Power
• Entering negotiations with the US Department of Energy for US$150 million of funding
• Constructed and opened multiple manufacturing and testing facilities

The above developments are encouraging for long-term investors. However, the market has shown that it wants profits to support a rich valuation. The Novonix share price could risk further declines if the company continues to churn through its capital.

The post Is Novonix’s 80% share price crash in 2022 justified? appeared first on The Motley Fool Australia.

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More reading

• Why did the Novonix share price have such a stellar run today?
• Here are the top 10 ASX 200 shares today
• The Novonix share price has crashed another 14% already this week. What’s going on?
• Why did the Novonix share price crash 16% in November?
• These were the worst performing ASX 200 shares in November

Motley Fool contributor Mitchell Lawler 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 no position in any of the stocks mentioned. 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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The Johns Lyng Group Ltd (ASX: JLG) share price is plummeting on Tuesday after the company revealed a director had offloaded four million of its shares.

Lindsay Barber, who is both the S&P/ASX 200 Index (ASX: XJO) company’s chief operating officer and one of its directors, sold the parcel in a bid to diversify his personal portfolio.

As of Monday’s close, four million Johns Lyng shares would have been worth around $27.2 million. Though, the building services company didn’t reveal the amount Barber received from the sale.

The market is reacting poorly to news of the sale and an accompanying guidance update.

It’s bidding the Johns Lyng share price 13.22% lower to trade at $5.91 at the time of writing.

Let’s take a closer look at the latest from the ASX 200 industrials share.

ASX 200 share tumbles on insider selling

The Johns Lyng share price is suffering amid another bout of insider selling today.

Barber recently sold 31% of his personal stake in the company, retaining around 8,871,000 shares.

The company states the insider remains committed to his role and has vowed not to sell any more shares within the next 12 months.

It’s just the latest round of insider selling going down among Johns Lyng bigwigs.

Both Barber and managing director and CEO Scott Didier sold a million shares in May. Didier was later revealed to have offloaded another four million shares in October.

All sales were undergone for personal reasons. The former was a move to manage their portfolios while the latter was to finance Didier’s move to the US.

Reconfirmed guidance

Johns Lyng also reconfirmed its financial year 2023 guidance today. It still expects to post around $1 billion of sales revenue and $105 million of earnings before interest, tax, depreciation, and amortisation (EBITDA).

Today’s fall included, the Johns Lyng share price is down 33% year to date. It has also fallen 28% since this time last year.

Comparatively, the ASX 200 has dropped 7% year to date and 3% over the last 12 months.

The post Guess which ASX 200 director just sold off $27 million worth of their company’s shares appeared first on The Motley Fool Australia.

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More reading

• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday

Motley Fool contributor Brooke Cooper 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 Johns Lyng Group. The Motley Fool Australia has recommended Johns Lyng Group. 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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ASX gold exchange-traded funds (ETFs) like the Global X Physical Gold ETF (ASX: GOLD) seem to be the talk of the ASX town this week.

Gold is a rather peculiar asset to invest in. Unlike ASX shares, you can buy and sell gold outside the ASX by just going to a bullion shop. Or a jeweller.

But there are many ways to invest in gold on the ASX too. There are gold miners, of course. The ASX has quite a few, such as Newcrest Mining Ltd (ASX: NCM) and Northern Star Resources Ltd (ASX: NST). But there are also gold ETFs to consider.

Take the Global X Physical Gold ETF. This fund, according to the provider, is backed by physical gold bullion. This bullion, in the form of “segregated, individually identified and allocated” bars, is held in a London vault. As such, an investment into the Global X Physical Gold ETF is an indirect investment in these gold bars.

If investors don’t want to store physical gold bullion in their homes, then an ETF like this is a viable alternative for any investor seeking exposure to gold.

But why gold in this day and age?

Why is gold all the rage right now?

Well, gold is an asset that is traditionally viewed as a hedge against inflation, economic uncertainty and financial instability. With rising interest rates, high inflation, the ongoing war in Ukraine and a possible recession next year, investors might be a bit nervous going into 2023.

The Future Fund certainly is. Australia’s sovereign wealth fund warned investors in its last portfolio update that it would be positioning its investment portfolio:

Looking ahead, key issues will be the extent of monetary policy tightening required to achieve inflation targets, how markets will respond to tightening measures, and the impact of fiscal policy measures on global financial systems. Ongoing geopolitical tensions also continue to pose risks to investors.

The Board continues to take a prudent approach to positioning the portfolio. We are focused on sustaining a portfolio that is as robust as possible to a range of scenarios, and that balances our risk and return objectives. We expect that real returns will continue to be much lower than in recent decades.

According to recent reporting in The Australian, this includes investing in gold. The Future Fund reportedly began buying exposure to the precious metal in 2020.

Today, Future Fund chief executive Raphael Arndt told The Australian that the Fund is holding “a few percent” in gold, a stake that probably did the fund well in 2022.

This year has been a dire one for most major asset classes. The S&P/ASX 200 Index (ASX: XJO) remains down by more than 6.5% year to date. The US S&P 500 Index has fared even worse, copping a fall of more than 20%. Property and bonds have also been general money losers.

And yet the Global X Physical Gold ETF is up more than 6% this year so far, proving the value of owning gold for a risk-averse portfolio like the Future Fund.

The post Why is everyone suddenly talking about the Global X Physical Gold ETF? appeared first on The Motley Fool Australia.

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More reading

• M&A action: ASX lithium share halted amid major acquisition
• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today
• Hoping to secure the next iShares S&P 500 ETF (IVV) dividend? Read this
• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today

Motley Fool contributor Sebastian Bowen has positions in Newcrest Mining. 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 no position in any of the stocks mentioned. 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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The Arizona Lithium Ltd (ASX: AZL) share price is in the freezer as the market prepares to hear news of merger and acquisition activity.

That $159 million Aussie lithium stock is rumoured to be acquiring Canada’s Prairie Lithium – which reportedly comes with an $80 million price tag.

The Arizona Lithium share price entered a trading halt on Monday morning, leaving it frozen at 6.2 cents.

And there it will remain until tomorrow morning unless the company drops more details this afternoon.

Let’s take a closer look at what could be going down at the ASX lithium share this week.

Arizona Lithium shares frozen as ASX waits for M&A news

Arizona Lithium requested its shares be halted on Monday morning amid what it described as a “material acquisition”. Sadly, that’s all we’ve got from the horse’s mouth so far.

Meanwhile, the Australian Financial Review reports the ASX company is gearing up to buy Prairie Lithium in a part-cash, part-scrip deal worth around $80 million.

The unlisted Canadian company is exploring the nation’s Saskatchewan province for lithium brine resources. Arizona Lithium is also exploring lithium in North America. It holds Arizona’s Big Sandy project.

Work on Big Sandy’s definitive feasibility study kicked off last month. It’s expected to be completed within a year.

The potential that production at Prairie Lithium’s project could kick off sooner than at Big Sandy is a major factor in the rumoured acquisition, according to the publication.

No doubt all eyes will be on the Arizona Lithium share price when it returns to trade. Particularly as this year has seen it tumble into the red.

The ASX lithium share is currently down 48% year to date. It has also fallen 31% since this time last year.

The post M&A action: ASX lithium share halted amid major acquisition appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today
• Hoping to secure the next iShares S&P 500 ETF (IVV) dividend? Read this
• Why is the Woodside share price smashing the ASX 200 on Tuesday?
• Why BWX, City Chic, Domain, and John Lyng shares are sinking today
• Here’s how I’d invest $10,000 in ASX shares for 2023

Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped into the red. At the time of writing, the benchmark index is down 0.55% to 7,094.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

AGL Energy Limited (ASX: AGL)

The AGL share price is up 2% to $8.04. Investors have been buying this energy company’s shares despite there being no news out of it. They may be looking for safe havens given the share market’s current volatility.

Invictus Energy Ltd (ASX: IVZ)

The Invictus Energy share price is up 17% to 34.5 cents. Yesterday this energy explorer revealed that underwater drilling encountered fluorescence and elevated gas shows in multiple zones of the Upper Angwa primary target. Managing Director Scott Macmillan said: “We have had further encouraging signs from the Mukuyu-1 sidetrack well since drilling recommenced, with multiple zones encountering elevated gas shows and fluorescence in our Upper Angwa primary target proving relatively consistent with the original Mukuyu-1 well.”

Maas Group Holdings Ltd (ASX: MGH)

The Maas share price is up 2% to $2.64. This is despite there being no news out of the construction materials, equipment and service provider. Though, it is worth highlighting that Goldman Sachs initiated coverage on the company this month with a buy rating and lofty $4.20 price target. This implies significant upside over the next 12 months.

Mach7 Technologies Ltd (ASX: M7T)

The Mach7 share price is up almost 2% to 57 cents. This morning, this medical imaging software solutions company announced a sales agreement with Nuvodia. The agreement is for Mach7’s entire Enterprise Imaging Platform, which will provide a true enterprise wide PACS solution. The subscription contract has a five-year term and a total contract value of $2.5 million. Nuvodia is a US-based national IT and radiology service provider that creates, manages, and supports mission-critical IT environments.

The post Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today appeared first on The Motley Fool Australia.

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More reading

• Buy AGL shares for 17% upside: top broker
• Here are the top 10 ASX 200 shares today
• 2 directors have been buying up AGL shares. Should you?
• Why is the AGL share price tumbling on Monday?
• Top brokers name 3 ASX shares to buy next week

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 Mach7 Technologies. The Motley Fool Australia has recommended Mach7 Technologies. 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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The iShares S&P 500 ETF (ASX: IVV) is not an exchange-traded fund (ETF) that has a strong reputation for dividend income. Covering the S&P 500 Index on the US markets, this ASX ETF holds 500 of the largest companies listed in America.

You’ll find everything from Apple, Microsoft, and Amazon to Exxon Mobil, Costco, and Tesla here in this ETF. As well as American Express, Coca-Cola, and Kraft Heinz.

US shares are not known for their high dividends, which of course don’t come with franking credits either. But the S&P 500 Index still has a robust dividend record and, as such, so does the iShares S&P 500 ETF.

This fund actually pays out a dividend distribution every quarter, not every six months, as is the norm here in Australia.

When is the iShares S&P 500 ETF’s latest dividend distribution?

The iShares S&P 500 ETF’s next dividend distribution is coming soon too. How soon? Well, investors can look forward to their next quarterly payout on 5 January. But if they wish to receive it, any new investors had better be quick. This ETF is scheduled to trade ex-distribution tomorrow, 21 December.

That means that any investor who doesn’t own iShares S&P 500 ETF units by the end of today’s trading session will be ineligible for this latest dividend distribution.

This is the iShares first dividend distribution payment since this ETF’s recent stock split. The fund split its units in a 15-to-1 unit division earlier this month.

iShares only released exactly how much investors can expect from this latest payout this morning. Unitholders can look forward to receiving a payment worth 12.63 cents per unit on 5 January. That will bring this ETF’s total distributions for the past 12 months to 53.6 cents per share on a post-split basis.

This total gives the iShares S&P 500 ETF a trailing dividend distribution yield of 1.4% on the current unit price of $38.15 (at the time of writing).

The post Hoping to secure the next iShares S&P 500 ETF (IVV) dividend? Read this appeared first on The Motley Fool Australia.

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More reading

• Will there be a stock market crash in 2023?
• Is the iShares S&P 500 ETF (IVV) a buy following its stock split?
• Is the iShares S&P 500 ETF (IVV) really down 95% today?
• What you need to know about next week’s iShares S&P 500 ETF (IVV) stock split
• 2 ASX ETFs I’d buy right now if I were in my 20s

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Amazon.com, American Express, Apple, Coca-Cola, Costco Wholesale, Kraft Heinz, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, Costco Wholesale, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Kraft Heinz and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Amazon.com, Apple, and iShares S&p 500 ETF. 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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The Woodside Energy Group Ltd (ASX: WDS) share price is defying the market’s tumble on Tuesday. Its strong performance follows a good night for oil prices.

Right now, the Woodside share price is $36.01. That’s 0.73% higher than its previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has slipped 0.59% so far today to trade at 7,091.9 points at the time of writing.

Let’s take a closer look at what’s bolstering the Woodside share price above the market’s fall today.

What’s going right for the Woodside share price today?

The Woodside share price is outperforming alongside many of its oil-producing peers today.

The stock is one of many driving the S&P/ASX 200 Energy Index (ASX: XEJ) to trade in the green, defying the market’s downturn. The energy sector is currently up 0.46% – making it the ASX 200’s best-performing sector so far today.

Its gain follows a strong night’s trade for oil. The Brent crude oil price rose 1% to US$79.80 a barrel overnight while the US Nymex crude oil price gained 1.2% to US$75.19 a barrel.

The black liquid’s value lifted amid rising hopes China might relax its COVID-19 restrictions, thereby likely increasing demand for the energy commodity, Reuters reports.

Its gains also come despite concerns the United States could fall into a recession after the nation’s Federal Reserve continued to battle rampant inflation with back-to-back rate hikes last week.

A rise in oil prices tends to drive Woodside’s stock higher. That’s because much of the company’s earnings depend on the commodity’s value. The higher the oil price, the more cash the oil producer can bring in.

Joining Woodside in the green today is the Santos Ltd (ASX: STO) share price. It’s gained 0.35% at the time of writing.

Meanwhile, fellow oil stock Beach Energy Ltd (ASX: BPT) is suffering alongside the market, falling 0.62%.

The post Why is the Woodside share price smashing the ASX 200 on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Invest, or not to invest in ASX shares: Why I think the pessimists are wrong again
• Is the Pinnacle share price the ASX 200’s biggest bargain right now?

Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. 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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The S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. In afternoon trade, the benchmark index is down 0.6% to 7,091.2 points.

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

BWX Ltd (ASX: BWX)

The BWX share price is down a massive 48% to 33 cents. Investors have been hitting the sell button in response to a shocking business update. That update reveals that the Sukin skincare manufacturer missed its guidance in FY 2022, admitted to channel stuffing activities, downgraded its FY 2023 guidance, and revealed a growing mountain of debt.

City Chic Collective Ltd (ASX: CCX)

The City Chic share price is down 22% to 46 cents. The catalyst for this was another terrible update from the plus sized fashion retailer. City Chic revealed that trading conditions remain tough and it now expects to post a first half loss. This tough sales environment doesn’t bode well for the company given its huge inventory position. Management expects to finish the half with inventory of $168 million to $174 million. This is 50% more than its current market capitalisation.

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is down over 7% to $2.64. This has been driven by the release of a trading update from the property listings company this morning. That update reveals that December month to date listings are down around 51% in Sydney and 37% in Melbourne. As a result of the challenging market environment, first half EBITDA is expected to be around $48 million.

Johns Lyng Group Ltd (ASX: JLG)

The Johns Lyng share price is down 11% to $6.05. This morning, the company revealed that its executive director and COO, Lindsay Barber, has sold 4 million shares. The share sale represents almost a third of Mr Barber’s prior holding.

The post Why BWX, City Chic, Domain, and John Lyng shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why did this ASX All Ordinaries share just crash 19%?
• Why is the BWX share price crashing 48% on Tuesday?
• BWX share price on watch amid $335m loss and guidance downgrade
• 2 ASX companies about to explode in the US market: experts
• Global warming play: Expert reveals the ASX share he’d stash for next 4 years

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 Johns Lyng Group. The Motley Fool Australia has recommended BWX and Johns Lyng Group. 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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With a new year approaching, now could be a good time to look at making some new additions to your portfolio.

If you have $10,000 available to invest in the share market, I would be investing it evenly across the ASX shares listed below.

Here’s why I think they would be top options for investors in 2023:

CSL Limited (ASX: CSL)

The first ASX share I would invest $10,000 into in 2023 is CSL. This biotherapeutics giant has a world-class portfolio of therapies and vaccines that generate billions of dollars in revenue each year.

But management never rests on its laurels. Each year, it invests in the region of 11% of its revenue back into research and development activities. This ensures that it has a pipeline of potentially lucrative products to support its future growth.

In addition, the company never shies away from an acquisition if it believes it will add value. This was evident earlier this year when CSL completed the acquisition of Vifor Pharma for $16 billion. This has added some leading iron deficiency, dialysis, and nephrology products to its arsenal.

And while the recent exit of its long-serving CEO adds an element of uncertainty, I’m confident the promotion of its COO, Dr Paul McKenzie, to the top job was a great move. After all, the company notes that Dr McKenzie has a “deep understanding of CSL’s strategy, culture and operations”. This should ensure that it is business as usual for CSL.

Finally, I’m not alone in seeing value in the CSL share price. A recent note out of Citi reveals that its analysts have reiterated their buy rating and $340.00 price target. This implies more than 17% upside from current levels, which I believe offers a compelling risk/reward.

Life360 Inc (ASX: 360)

Another ASX share that I would buy for 2023 is Life360. It is the technology company behind the world’s leading real-time, location-sharing app, taken up by more than 40 million users.

In addition, Life360 has acquired a couple of companies involved with wearables and items tracking recently. This provides it with cross-selling opportunities to its massive user base.

But that’s not where it stops. Life360 is likely to continue leveraging its user base to disrupt other markets. It has done this previously with its roadside assistance offering, Driver Protect. Looking ahead, it has been tipped to enter “insurance, item & pet tracking, senior monitoring, home security and/or identity theft”, according to analysts at Bell Potter.

Speaking of which, its analysts are very positive on the Life360 share price at its current level and have a buy rating and $9.00 price target. This suggests potential upside of more than 60% for investors over the next 12 months.

It is also worth noting that Bell Potter doesn’t expect Life360 to be an unprofitable tech company for long. It is forecasting positive free cash flow from Q3 or Q4 of next year. It also believes that its cash balance won’t sink below US$50 million before then. Goldman Sachs has echoed this view recently.

I also agree and believe that once profitability is achieved, it could support a material re-rating for its shares in 2023.

The post Here’s how I’d invest $10,000 in ASX shares for 2023 appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Life360. The Motley Fool Australia has no position in any of the stocks mentioned. 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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The City Chic Collective Ltd (ASX: CCX) share price is plummeting on Tuesday after the All Ordinaries Index (ASX: XAO) company released a trading update for the fiscal year so far.

The clothing retailer revealed it’s on track to post a small underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) loss for the first half of financial year 2023.

Perhaps unsurprisingly, the market is reacting poorly to the news. After opening 15% lower at 50 cents, the City Chic share price plunged to a new 52-week low of 44 cents – 25% below its previous close.

Fortunately, things have since picked up slightly. At the time of writing, the City Chic share price is back up at 48 cents – 18.64% lower than its previous close.

Let’s take a closer look at the update that’s seemingly disappointed investors today.

All Ordinaries retail share plummets on trading update

The City Chic share price is being pummelled as Australia looks to the holiday season – a key period for the company’s earnings.

The All Ordinaries company revealed that, since its last trading update in November, conditions have remained volatile amid lower-than-expected demand.

As a result, it has upped its promotional activity to drive demand, and that’s compressed its gross margins.

Meanwhile, its revenue for financial year 2023 so far is 7% lower than it was at the same point of last year – sitting at $157.1 million. However, it’s up around 38% on that of financial year 2021.

Combined, the two factors are expected to lead City Chic to post a first-half EBITDA loss. Though, that’s subject to the coming fortnight’s trade, encompassing the remainder of the holiday season.

More positively, the company’s confident its inventory will be at the lower end of previous guidance – $168 million to $174 million.

The company will provide a more detailed trading update in mid-January following the end of the reporting period.

City Chic share price snapshot

This year has taken a major toll on the clothing retailer’s stock. The City Chic share price has tumbled 91% year to date. It’s also down 90% over the last 12 months.

For comparison, the All Ordinaries Index has dropped 8% year to date and 5% since this time last year.

The post Why did this ASX All Ordinaries share just crash 19%? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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 no position in any of the stocks mentioned. 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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