Why Kogan and these ASX shares have crashed lower in 2020

Kogan.com Ltd (ASX:KGN) and these ASX shares have crashed lower in 2020. Here's why they have been sold off…

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earlier today I looked at three shares that have just climbed to 52-week highs or better.

Unfortunately, not all shares are flying high in January. Here's why these shares have been sold off this month:

Kogan.com Ltd (ASX: KGN)

The Kogan share price has crashed 28% lower since the start of the year. Investors were selling Kogan's shares after it released a surprisingly disappointing first half update. Kogan reported gross sales and gross profit growth of 16% and 9%, respectively, over the prior corresponding period. This was a sharp slowdown on its gross profit growth during the first quarter when it delivered a 28% increase over the prior corresponding period. This appears to have been driven by a material decline in Third-Party Brands sales.

Mosaic Brands Ltd (ASX: MOZ)

The Mosaic Brands share price is down a disappointing 27% in 2020. The fashion retailer, formerly known as Noni B, came under pressure after advising that comparable sales through the second half of November and throughout December were significantly impacted by the devastating bushfires. As a result, first half reported EBITDA is expected to be up 36% to ~$32 million. Whilst on paper this looks like solid growth in a challenging retail market, it has fallen well short of expectations following some significant acquisitions.

NIB Holdings Limited (ASX: NHF)

The NIB share price has fallen 12.7% since the start of the year. The private health insurer's shares were sold off after it downgraded its FY 2020 guidance. NIB advised that it now expects FY 2020 underlying operating profit (UOP) to be at least $170 million, with statutory operating profit of at least $150 million. Previously, NIB had guided to UOP of at least $200 million and statutory operating profit of at least $180 million. Management explained that the profit downgrade was due largely to an increase in claims expenses across much of the business.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Kogan.com ltd and NIB Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

A young man clasps his hand to his head with his eyes closed and a pained expression on his face as he clasps a laptop computer in front of him, seemingly learning of bad news or a poor investment.
Share Fallers

Why Burgundy Diamond Mines, Clarity Pharmaceuticals, EML, and Zip are sinking today

These ASX shares are ending the week in the red. But why?

Read more »

A worried man holds his head and look at his computer.
Share Fallers

Why 29Metals, Brainchip, Platinum, and Premier Investments shares are falling today

These ASX shares are having a tough time on hump day.

Read more »

Man with his head in his head because of falling share price.
Share Fallers

Why 29Metals, Atlas Arteria, IDP Education, and Mineral Resources shares are falling

These ASX shares are having a tough time on Tuesday. But why?

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why ALS, EOS, NRW, and Patriot Battery Metals are dropping today

These ASX shares are starting the week in the red.

Read more »

A man looking at his laptop and thinking.
Technology Shares

Why are these ASX tech shares getting smashed today?

Owners of these two stocks are missing out today.

Read more »

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.
Share Fallers

Why AGL, Brickworks, IGO, and New Hope shares are dropping today

These ASX shares are having a poor session. But why?

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Amcor, Arafura, Brainchip, and South32 shares are tumbling today

These ASX shares are having a tough time on hump day. But why?

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Aussie Broadband, Liontown, Metals Acquisition, and Seek shares are falling

These ASX shares are having a poor session. But why?

Read more »