Why Accent, Humm, IAG, and Webjet shares are dropping

These ASX shares are dropping on Friday…

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In late afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is fighting hard to staying in positive territory. At the time of writing, the benchmark index is up 0.1% to 6,800.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here's why they are dropping:

Accent Group Ltd (ASX: AX1)

The Accent share price is down 9% to $1.38. Investors have been selling this footwear retailer's shares following the release of a trading update. Accent advised that it expects to report earnings before interest and tax (EBIT) in the range of $61 million to $63 million in FY 2022. This will be down by approximately 50% from the $124.9 million it reported in FY 2021.

Humm Group Ltd (ASX: HUM)

The Humm share price is down 5% to 48 cents. Investors have been selling Humm's shares after it confirmed that Sumitomo Mitsui Banking Corporation has lodged a statement of claim in relation to a potential exposure to Forum Finance. Sumitomo Mitsui Banking Corporation is reportedly chasing Humm for ~$34 million. It alleges that the company was negligent in selling it items linked to the Forum Group and misled the bank.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 2% to $4.18. This follows the release of the insurance giant's preliminary full-year results. IAG revealed that its insurance profit margin came in at 7.4% in FY 2022. This is down 6.1 percentage points year on year and short of its 10% to 12% guidance. Management blamed this largely on its net natural peril costs of $1,119 million, which were $354 million above the original allowance of $765 million.

Webjet Limited (ASX: WEB)

The Webjet share price is down 5% to $5.09. Investors have been selling Webjet and other ASX travel shares following a poor night for the sector on Wall Street. This was driven by disappointing quarterly updates from two major US airlines.

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 positions in and has recommended Insurance Australia Group Limited. The Motley Fool Australia has recommended Accent Group, Humm Group Limited, and Webjet Ltd. 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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