S&P/ASX 200 Index (ASX: XJO) lithium shares were all in the green following the first three trading days of the week.

As at Wednesday’s closing bell, here’s how the big lithium stocks had fared for the week:

• Core Lithium Ltd (ASX: CXO) shares were up 0.7%
• Allkem Ltd (ASX: AKE) shares were up 1.5%
• Pilbara Minerals Ltd (ASX: PLS) shares were up 1.4%
• IGO Ltd (ASX: IGO) shares were up 1.5%

Then Thursday rolled in. And those gains evaporated.

Why have ASX 200 lithium shares been falling for two days?

All of the big lithium stocks closed in the red yesterday.

And today those losses are mounting.

Here’s how ASX 200 lithium shares are currently tracking since the opening bell on Monday:

• Core Lithium Ltd (ASX: CXO) shares are down 5.8%
• Allkem Ltd (ASX: AKE) shares have lost 6.7%
• Pilbara Minerals Ltd (ASX: PLS) shares are down 8.0%
• IGO Ltd (ASX: IGO) shares have lost 4.7%

The retrace looks to be linked to a massive spike in COVID infections in China, with infections in the world’s most populous nation reaching all-time highs.

China, also the world’s number two economy is a global leader in EV production. Hence the nation has a voracious appetite for lithium, a critical element in most EV and grid storage batteries.

While Chinese authorities have yet to issue new sweeping lockdown orders, increasing restrictions this week are dampening hopes that China’s economy will come roaring back anytime soon.

That, in turn, looks to be working into investor expectations of near-term lithium demand, and throwing up headwinds for ASX 200 lithium shares.

But don’t feel too bad for shareholders just yet.

How have the big lithium stocks performed over the year?

Over the past 12 months, all ASX 200 lithium shares have smashed the benchmark returns.

Since this time last year, the ASX 200 is down 2%.

Over that same time, Allkem shares are up 38%; IGO shares have gained 44%; Pilbara shares are up 73%; and the Core Lithium share price has surged 143%.

The post Here’s why ASX 200 lithium shares are ending the week with a fizzle appeared first on The Motley Fool Australia.

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• If I’d bought $5,000 of Core Lithium shares at the start of this financial year, guess how much I’d have now?
• 3 ASX 200 shares analysts are tipping for stellar growth
• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• What $10,000 in ASX lithium shares a year ago would be worth today

Motley Fool contributor Bernd Struben 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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It’s turning out to be a pretty top week for the S&P/ASX 200 Index (ASX: XJO) and ASX shares. So far this Friday, the ASX 200 has gained another 0.1%, putting the index at around 7,250 points. That’s at a six-month high. The ASX 200 has added value every day this week, bar Monday, and is up 1.3% since last Friday. But let’s talk about the Qantas Airways Limited (ASX: QAN) share price.

Although the ASX 200 is having a pleasing week, the Qantas share price is flying far higher. Qantas shares ended last week at $5.88. But yesterday, the airline hit a new 52-week high of $6.36 a share.

That was also a new post-COVID high for the airline, which, until this month, hadn’t seen a share price with a ‘6’ in front of it since early 2020.

Although Qantas shares have fallen today, down 0.73% so far at $6.14, the airline is still up a healthy 4.4% over just this week.

So why has the Qantas share price been having such a pleasant week?

Well, it probably has quite a lot to do with the update Qantas gave to investors on Wednesday. This update saw Qantas raise its guidance forecast for the first half of FY2023.

It was only last month that Qantas declared that it expects to make an underlying profit before tax of between $1.2 billion and $1.3 billion for the half.

But on Wednesday, just a month later, Qantas told investors that they can add another $150 million to those figures, with the new guidance range set for $1.35-$1.45 billion. This comes off the back of the insatiable demand for travel.

Qantas also declared that it expects net debt to fall to between $2.3 billion and $2.5 billion by the end of December. That represents an improvement of $900 million.

So understandably, investors were very impressed with this update. Qantas shares rose 6% on the day it was released, and remain elevated for the week, despite today’s mild falls.

The post Why is the Qantas share price having such a top run this week? appeared first on The Motley Fool Australia.

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• ASX 200 company banned from selling its products. Here’s why
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• 5 things to watch on the ASX 200 on Friday
• Why has the Lake Resources share price tumbled 11% in 10 days?

Motley Fool contributor Sebastian Bowen 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 Objective Corporation Limited (ASX: OCL) share price is ending the week in a disappointing fashion.

At the time of writing, the technology solutions company’s shares are down 15% to $12.74.

This means the Objective Corp share price is trading within sight of its 52-week low of $12.50.

Why is the Objective Corp share price being sold off?

Investors have been selling down the Objective Corp share price today in response to the release of a disappointing trading update after the market close on Thursday.

As management previously advised, Objective Corp has followed the lead of TechnologyOne Ltd (ASX: TNE) and switched its focus to a software-as-a-service (SaaS) model. This has seen the company stop offering purchase perpetual right to use (PRTU) licensing options to new customers.

Management expects this to boost its annual recurring revenue (ARR) in the coming years. However, this has had a negative impact on its sales revenue in FY 2023 and management is now guiding to softer than normal revenue growth.

In addition, the company notes that salary growth in the technology industry has been “very robust” over the past 18 months and it has spent heavily on travel costs to re-engage with customers.

In light of the above, FY 2023 revenue growth is going to be “single-digit rather than the double-digit figures that shareholders have come to expect” and its operating margin will decrease.

While this is disappointing, management remains very positive and highlights its very strong balance sheet (cash of $60 million and no debt), its highly cash generative business, and positive long term outlook. In respect to the latter, the company concluded:

The customer demand and fundamentals of our business remain strong. This will put us in a strong position to deliver outstanding headline numbers again from FY 2024.

The post Why is this ASX All Ords tech share crashing 15%? appeared first on The Motley Fool Australia.

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• 3 ASX tech shares that risk going up in flames, and 1 sturdy stock I’d buy instead
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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 Objective Corporation Limited. The Motley Fool Australia has recommended TechnologyOne 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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Retail investors have been prohibited from putting money into two funds that deal in ASX shares.

Corporate watchdog Australian Securities Investments Commission announced Friday that it has issued interim orders to stop Perpetual Limited (ASX: PPT) from offering or distributing two funds:

• Perpetual Pure Microcap Fund
• Perpetual Geared Australian Share Fund

The order prohibits the S&P/ASX 200 Index (ASX: XJO) company from issuing interest in the funds, providing product disclosure statements or recommending retail investors invest in those products.

So why did ASIC take such action?

Risks of funds could be inappropriate

ASIC stated it was compelled to act to “protect retail investors from potentially investing in funds that may not be suitable for their financial objectives, situation or needs”.

Perpetual has been accused of not sufficiently considering whether the risks and features of those funds are appropriate for the target markets.

The Perpetual Pure Microcap Fund exclusively invests in microcap ASX shares, which can be more volatile than larger cap stocks.

“Microcap equities carry a significant level of risk due to high price volatility, shallower market depth (with few traders and turnover in share transactions) and the limited operational history of microcap companies,” stated ASIC.

In contrast, the watchdog was worried about how the Perpetual Geared Australian Share Fund can borrow up to 60% of the fund’s total assets as leverage for ASX shares.

“The fund’s investment strategy comes with elevated risks, including the potential for a high level of price volatility and the use of leverage, which increases the chances of investors incurring large losses.”

Perpetual co-operating with ASIC

Perpetual confirmed to The Motley Fool that the company is “engaging with ASIC to respond to the interim stop order”.

“Perpetual takes its regulatory obligations seriously and has taken immediate steps to comply with this interim stop order,” a Perpetual spokesperson said.

“Perpetual has ceased the sale and distribution of these products effective 24 November 2022 until further notice.”

The order itself initially lasts 21 days, although this is subject to change.

The Perpetual share price was up 0.63% at the time of writing. The stock has lost 30.8% year to date, and currently pays out an 8.15% dividend yield.

The ASX 200 business has a market capitalisation of $1.47 billion.

The post ASX 200 company banned from selling its products. Here’s why appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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S&P/ASX 200 Index (ASX: XJO) coal shares are ending a strong week with a strong performance on Friday.

In early trade the Whitehaven Coal Ltd (ASX: WHC) share price is up 0.8%; New Hope Corp Limited (ASX: NHC) shares are up 3%; and the Yancoal Australia Ltd (ASX: YAL) share price is up 1.4%.

The ASX 200 is in the green as well, up a slender 0.1%.

With today’s intraday gains factored in, investors who bought shares in any of the big coal stocks on Monday morning will be sitting on some outsized gains for the week.

Since the opening bell on Monday, New Hope shares have gained 6.1% while both Yancoal and Whitehaven shares are up 7.9%.

So, what’s been happening with the ASX 200 coal shares this week?

What’s been drawing investor interest this week?

Prices for thermal coal (primarily used to generate electricity) gained over the week, up roughly 4% from last week.

The coal price continued to trade near historic highs, at just under US$350 per tonne. That’s more than double the price that same tonne was fetching 12 months ago. And that’s continuing to see the ASX 200 coal shares rake in the cash.

New Hope’s strong performance over the week came despite the miner closing 8.8% lower yesterday. That followed on the company’s release of its quarterly update.

New Hope reported a 167% increase in underlying earnings before interest, taxes, depreciation and amortisation (EBITDA). That’s the raking in the cash part.

However, investors appear to have sold off the stock after the miner reported production slipped slightly as it struggles with wet weather and industry-wide labour shortages.

ASX 200 investor interest in the big coal shares also likely remains strong in light of their smashing trailing dividend yields.

At current share prices, New Hope trades at an 8.9%, fully franked yield; Whitehaven at a yield of 5.7%, fully franked; and Yancoal at a whopping trailing yield of 21.1%, unfranked.

How have the ASX 200 coal shares performed in 2022?

We know investors in ASX 200 coal shares this week were holding some outperforming stocks.

As for the calendar year, you’re unlikely to hear any complaints.

Since the opening bell on 4 January, the New Hope share price is up 138%; Yancoal shares have gained 88%; and the Whitehaven share price has soared 227%.

The post What’s happening with ASX 200 coal shares this week? appeared first on The Motley Fool Australia.

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• 5 of the craziest things making news on the ASX this week
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• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why is the New Hope share price tumbling 8% on Thursday?

Motley Fool contributor Bernd Struben 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 A2 Milk Company Ltd (ASX: A2M) share price is having another positive day.

In morning trade, the infant formula company’s shares are up almost 2% to $6.20.

This latest gain means the A2 Milk share price is now up 40% over the last six months.

Can the A2 Milk share price keep rising?

While there is unlikely to be another 40% gain over the next six months, one leading broker sees scope for the A2 Milk share price to continue its ascent.

According to a recent note out of Bell Potter, its analysts have retained their buy rating with a $6.80 price target.

This implies potential upside of approximately 10% for investors from current levels.

Why is the broker bullish?

Bell Potter is positive on the company due to its strategy that aims to delivers sales of NZ$2 billion and EBITDA margins in the teens by FY 2026.

It highlights that this would implies very strong earnings per share growth over the coming years, which would more than justify the current multiples its shares trade on.

The broker also sees a major opportunity in the United States for its infant formula following the recent receipt of FDA approval. It explained:

A2M has stated that through its manufacturing partner, SM1, it has access to ~9m tins of IMF capacity. However, A2M’s initial expectations are for the supply of up to ~1m tins in 2H23e. This does not appear an egregious forecast, given we estimate BUB sold ~0.45m tins into the US over 4Q22-1Q23 with 6,500 distribution points and A2M has 27,400 existing distribution points for its fresh portfolio.

Our Buy rating is unchanged. If A2M can execute on its strategy to achieve ~NZ$2Bn in FY26e revenues and EBITDA margins in the teens, then it would imply compound double digit EPS growth through to FY26e. We view the initial entry into the US IMF category as incrementally positive, though note the scale of A2M’s existing US fresh distribution footprint implies this could be a more meaningful contributor should sales velocities approach levels seen in other markets.

The post Up 40% in six months, can the A2 Milk share price keep rising? appeared first on The Motley Fool Australia.

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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 A2 Milk. 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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As an ASX big four bank, Commonwealth Bank of Australia (ASX: CBA) shares have always been a prominent choice for ASX dividend income investors.

CBA shares have paid out hefty dividends for decades. But does that mean it is a good choice for income investors today?

Well, let’s start with the dividends CBA is currently paying out. So Commonwealth Bank shares have doled out two dividends this year, as is the norm.

The first was the March interim dividend of $1.75 per share, fully franked.

The second was the final dividend from September, which was worth $2.10 per share, also fully franked.

That’s a total of $3.85 in dividend income per share for 2022. On today’s CBA share price of $108.10 (at the time of writing), this gives CBA shares a trailing dividend yield of 3.56%.

Are CBA shares a buy for dividend income?

But let’s talk about what might happen going forward from here. After all, knowing what kind of income CBA has paid out only goes so far in terms of what is useful for an investor today.

So, like many ASX dividend shares, CBA has a dividend policy. This tells investors that each year, CBA will strive to “target a full-year payout ratio of 70% – 80%” of its earnings to fund its dividends.

Over FY2022, CBA made $5.57 in earnings per share (EPS), up 14% from the $4.88 it made in FY2021. Of that $5.57 in EPS, the bank paid out $3.85 of those earnings per share as dividends. That’s a payout ratio of 69.12%, so just below CBA’s ratio target.

Both of these metrics bode well for future dividend income. If CBA can manage to grow its EPS again in FY2023, and keep its payout ratio steady, then shareholders will enjoy a dividend increase. If the bank grows its EPS and ups its payout ratio, then investors will enjoy an even larger dividend rise.

Perhaps this is why brokers at Macquarie have recently decided to swap out Australian and New Zealand Banking Group Ltd (ASX: ANZ) shares for CBA shares in a recent model portfolio reshuffling.

So on the numbers, it looks as though CBA’s current dividends are on a sure footing and could increase further. But we shall have to wait and see if CBA can keep up its earnings growth going forward. That’s the real key to a rising dividend.

The post Could now be the time for income investors to buy CBA shares? appeared first on The Motley Fool Australia.

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• 5 ASX 200 shares Macquarie just recommended its clients buy
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• How I’d aim for $1,000 in monthly income by buying ASX 200 dividend shares
• Are CBA shares flying too close to the sun?
• Markets are nervous. Why waiting to buy these ASX 200 shares could prove expensive

Motley Fool contributor Sebastian Bowen 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 Macquarie 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Billionaire investor Warren Buffett has been invested in stocks for decades, and has seen many presidents come and go during that time. And if you’re investing for the long haul, you have to be prepared for the reality that your preferred party won’t always be in power.

You don’t need to get in and out of stocks depending on election results or changes in power. Buffett hasn’t let that affect his long-term strategy, and investors would do well to follow a similar approach.

Buffett simply bets on America

Buffett has said in the past that politics don’t necessarily weigh on his investing decisions: “I won’t say if my candidate doesn’t win, and probably half the time they haven’t, I’m going to take my ball and go home.” In general, Buffett is just bullish on America and the economy’s ability to continue growing and progressing over the long term.

Presidents, after all, can serve just two terms, so unless you’re investing for a shorter time frame than that, there can still be time for your investments to bounce back if policies during that stretch negatively impacted businesses in your portfolio.  

Investors should focus on fundamentals, not elections

Even if an election turns out favorably, that still doesn’t guarantee that certain policies will be put in place or that certain stocks will soar. Take the cannabis industry as an example. When President Biden won the 2020 election, shares of pot stocks took off on the expectation that marijuana reform would be inevitable. In November 2020, shares of cannabis producer Tilray Brands (NASDAQ: TLRY) skyrocketed 58%.

But no significant marijuana reform has taken place since then. And now with the Republican party regaining control of the House, it may be difficult for anything to happen over the next two years. And so despite all the hype and optimism for Tilray, the stock has gone on to decline 55% since the start of Biden’s term in 2021.

Investors would have been better off focusing on the company’s fundamentals, which remain problematic. Tilray has consistently reported operating losses and negative cash flow from its day-to-day operations, two things that should have served as significant red flags for investors.   

Data by YCharts.

This should have served as a reason to be wary of the pot stock, as opposed to hoping that favorable election results would make up for the company’s shortcomings and poor financials. After all, while a president can help create new opportunities, a company still has to be in a good position to take advantage of them should they come up, and Tilray certainly isn’t.

Another example of where fears haven’t lived up to reality is in the tech world, where many tech investors were concerned that a Democratic win in 2020 could have meant the breakup of companies, including Meta Platforms (NASDAQ: META), which owns Instagram, WhatsApp, and Facebook. Meta still owns all of those businesses despite what may have seemed like an unfavorable election result. While that doesn’t mean a breakup won’t happen in the future, it’s yet another reminder of why investors shouldn’t read too much into elections.

Although Meta’s stock hasn’t performed all that well of late and is down 60% since 2021, those losses are primarily due to the current bear market and macro conditions in the tech industry that are weighing down many stocks. But with strong fundamentals that include $26 billion in free cash flow over the trailing 12 months and a profit margin of 24%, Meta remains in good shape and may be an attractive stock for long-term investors to add to their portfolios today.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Warren Buffett doesn’t worry about election results appeared first on The Motley Fool Australia.

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• 3 reasons this fundie is still bullish on ASX mining shares

David Jagielski has positions in Meta Platforms, Inc. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Meta Platforms, Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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It’s been a good week for ASX fans, and there’s been plenty of news to catch their eye.

The S&P/ASX 200 Index (ASX: XJO) has lifted 1.34% so far this week. Meanwhile, the All Ordinaries Index (ASX: XAO) is up 1.2% week-on-week right now. Both indices are currently trading at near-six-month highs.

So, which stocks have been helping to bolster the market? Keep reading to find out.

5 ASX shares making big news this week

Qantas posts shock guidance

Is it a bird? Is it a plane? No, it’s a flying kangaroo. The Qantas Airways Limited (ASX: QAN) share price soared 5% on Wednesday after the company surprised the market with a guidance upgrade just months after tipping its first post-COVID profit.

The ASX airline share now expects to reveal between $1.35 billion and $1.45 billion of underlying profit before tax for the first half of financial year 2023. That’s $150 million higher than its previous projection.

Kogan eyes historic recovery

Continuing this week’s good news, Kogan.com Ltd (ASX: KGN) shares launched 8% yesterday after the company’s CEO tipped it to post “historical operating margins during the second half.”

That probably had long-term investors jumping for joy. The online retailer’s stock has dumped a whopping 85% since its 2020 high.

BWX flags return to trade after 3-month freeze

Recent times haven’t been so kind to skin and hair care company BWX Ltd (ASX: BWX), however. Its share price hasn’t gone anywhere since August amid confusion over its recent earnings.

But BWX this week flagged its audited earnings will likely drop on Monday, with its share price expected to thaw on Tuesday.

BrainChip surges amid Amazon appointment

Meanwhile, the share price of ASX 200 artificial intelligence company BrainChip Holdings Ltd (ASX: BRN) has rocketed 16% this week.

Its gains came amid news of the company’s new chief marketing officer, former Amazon.com Inc (NASDAQ: AMZN) face Nandan Nayampally.

Coal stocks pop, then drop

Finally, the week was also good to ASX 200 coal shares, until it wasn’t.

Stock in Whitehaven Coal Ltd (ASX: WHC), for instance, lifted 17% between Monday’s open and Wednesday’s close. However, Thursday saw it tumble 7%.

That came despite no price-sensitive news from the energy giant. However, coal prices likely played their part.

Additionally, word that Whitehaven managing director and CEO Paul Flynn offloaded $7.9 million of the company’s stock might have weighed on its share price yesterday.

The post 5 of the craziest things making news on the ASX this week appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon and Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Amazon and BWX 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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The City Chic Collective Ltd (ASX: CCX) share price is having a day to forget.

In morning trade, the plus sized fashion retailer’s shares are down 24% to a 52-week low of $1.05.

Why is the City Chic share price crashing?

Investors have been hitting the sell button in a hurry this morning after the retailer released a trading update at its annual general meeting.

According to the release, City Chic’s revenue is down 2% financial year to date to $128.6 million. While ANZ sales are up 10%, this has been offset by a worrying decline in Americas sales. The latter segment posted a 12% decline in revenue despite the significant weakness in the Australian dollar over the last 12 months.

Management commented:

Demand has been volatile, and the consumer is looking for promotion as a reason to buy. The competitive landscape, especially in the Northern Hemisphere, has intensified as all businesses promote aggressively to capture the limited dollars she is prepared to spend.

At a regional level there have been very contrasting results. The Southern Hemisphere, with stores open has shown growth and the Northern Hemisphere, which is facing much greater economic pressures, delivered a decline in revenue.

What else?

Another area of concern that could be weighing on the City Chic share price is the company’s inventory position.

Management expects its inventory to be in the range of $168 million to $174 million at the end of the first half. As a comparison, City Chic currently has a market capitalisation of just over $250 million. This appears to indicate that investors have major doubts that the company will be able to successfully shift these items.

Another negative from today’s update was management’s commentary on margins. While no details were provided on its profits, its margin commentary appears to indicate that City Chic’s earnings could be down sharply during the first half. It said:

The real issue for us to deal with in FY2023 is temporary margin compression driven by competition for reduced demand, together with transitory logistics costs in the Northern Hemisphere.

Given this bleak outlook, you may not be surprised to learn that the City Chic share price is now down over 80% since the start of the year.

The post What is driving the City Chic share price 21% lower on Friday? appeared first on The Motley Fool Australia.

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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 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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