In afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a subdued note. At the time of writing, the benchmark index is down 0.3% to 6,828.7 points.
Four ASX shares that are falling more than most today are listed below. Here's why they are sinking:
AVITA Medical Inc (ASX: AVH)
The AVITA share price is down 10% to $6.28 following the release of its second quarter update. The regenerative medicine company reported a 57% increase in revenue to $5.1 million and an almost 90% improvement in its net loss to $5.6 million. While this was positive, management's commentary appears to have spooked investors. It noted that almost 50% of its revenue comes from 20 accounts with physicians and hospitals. And as these accounts are susceptible to the effects of COVID-19, it was not in a position to provide guidance.
Baby Bunting Group Ltd (ASX: BBN)
The Baby Bunting share price is down 4% to $5.40 following the release of its half year results. Thanks to a 15% increase in comparable store sales and a 95.9% increase in online sales, the baby products retailer delivered a 16.6% increase in total sales to $217.3 million. And following a 41-basis points expansion in its gross margin, the company recorded a 43.5% increase in pro forma net profit after tax to $10.8 million. While this was undoubtedly strong, the market was expecting even stronger growth.
Kathmandu Holdings Ltd (ASX: KMD)
The Kathmandu share price is down 2.5% to $1.21. The retail company's shares have come under pressure today following the release of an update on its first half performance. For the six months ended 31 January, the company achieved a 12% increase in half year group sales. However, the prior corresponding period only included a three-month contribution from its Rip Curl business. Sales from the Kathmandu business were down 30% on a same store basis.
Webjet Limited (ASX: WEB)
The Webjet share price is down 3.5% to $4.67. Webjet and a number of travel shares are trading lower today amid speculation that Melbourne is going to go into a five-day lockdown to stop the spread of COVID-19. This would be another blow for the recovering travel market.
