The S&P/ASX 200 Index (ASX: XJO) has just completed a very strong week. The benchmark index rose 1.8% over the five days to finish the week at 7,456.9 points.
Unfortunately, not all shares climbed with the market. Here’s why these were the worst performers on the ASX 200 last week:
Virgin Money UK (ASX: VUK)
The Virgin Money share price was the worst performer on the ASX 200 last week with a 13.7% decline. Investors were selling the UK-based bank’s shares following the release of its full year update. Virgin Money advised that it expects to report a 546% increase in underlying profit before tax to 801 million pounds. However, disappointing the market, the bank revealed that it will incur 275 million pounds in restructuring costs over the next three years. This was approximately double what the market was expecting.
Domino’s Pizza Enterprises Ltd (ASX: DMP)
The Domino’s share price was a close second with a decline of just under 13.7% last week. The catalyst for this was the pizza chain operator’s trading update at its annual general meeting. That update revealed a severe deterioration in the performance of the Domino’s Japan business once COVID restrictions lifted in the country. As a result, management warned that it can no longer forecast whether FY 2022 Japan sales and earnings would surpass those recorded in FY 2021. This appears to have sparked fears that other markets could follow suit.
Westpac Banking Corp (ASX: WBC)
The Westpac share price was a very disappointing performer last week, recording a sizeable 12.2% decline. Investors were selling the banking giant’s shares following the release of its full year results. Although Australia’s oldest bank doubled its cash earnings in FY 2021, this was still a touch short of expectations. In addition, a smaller than expected share buyback and a weak net interest margin outlook weighed on sentiment. It was largely because of the latter that Goldman Sachs downgraded the bank’s shares to a neutral rating with a $25.60 price target.
Beach Energy Ltd (ASX: BPT)
The Beach Energy share price was out of form and tumbled 8.2% last week. The catalyst for this was the surprise announcement of the departure of its Chief Executive. Beach advised that Managing Director and CEO Matt Kay had tendered his resignation to the company’s board. The release explains that Kay is leaving to pursue other professional opportunities.