The Endeavour Group Ltd (ASX: EDV) share price has slipped 8.4% in just 2 weeks despite no news posted by the company.
Along with the residents of Victoria, the ACT and New South Wales, however, Endeavour’s operations have faced enduring lockdowns as COVID-19 continues to spread through communities.
Endeavour has previously noted the negative impact lockdowns have on its business, particularly its hotel segment.
Right now, the Endeavour share price is $6.67, 0.15% lower than its previous close.
Let’s take a closer look at what could be dragging on the drinks retailer and hotel operator’s share price lately.
Why is the Endeavour share price sliding?
The last fortnight has been tough for the Endeavour share price. Here’s what might be weighing on it.
The COVID-19 lockdowns, including those that have ended over the past 14 days, have possibly impacted Endeavour’s business and perhaps, its share price movement.
Endeavour experiences a unique response to COVID-19 outbreaks as its retail segment generally performs well during lockdowns while its hotel segment suffers. The company outlined the impact of the pandemic in its financial year 2021 earnings.
Endeavour reported that the company’s hotels have been hit hard. There were just 195 days in FY21 in which all of the company’s hotels were open.
And since the start of FY22, nearly every state in the country has experienced at least one lockdown, leaving many of Endeavour’s hotels shut once more.
Sydney has been in lockdown since the end of June. Melbourne was under stay-at-home orders for 12 days in July. Then, on 6 August, it was plunged into its ongoing lockdown. The ACT’s current restrictions began on 12 August.
Meanwhile, regional Victorian and New South Wales residents had lockdown restrictions lifted just last week.
However, the Endeavour share price gained 16% between the end of June and the end of August. That could suggest the company’s stock initially responded well to the lockdowns.
It’s possible the recent drop in the Endeavour share price is reflecting a simple rebalancing by the market.