Despite some tough days at the end of the month, the S&P/ASX 200 Index (ASX: XJO) managed to record a small gain in August. The benchmark index climbed 0.6% to end the month at 6,986.8 points.
Unfortunately, not all shares climbed with the market. Here's why these were the worst performers on the ASX 200 in August:
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City Chic Collective Ltd (ASX: CCX)
The City Chic share price was the worst performer on the ASX 200 in August with a 29.5% decline. Investors were selling this plus sized fashion retailer's shares following the release of a disappointing full year result. City Chic revealed a 39% increase in revenue to $369.2 million and a modest increase in net profit after tax to $22.3 million. However, overshadowing this was the almost tripling of its inventory position and its negative cash flow.
St Barbara Ltd (ASX: SBM)
The St Barbara share price was out of form and dropped 20.7% during the month. Investors were selling St Barbara and other gold miners last month after the gold price tumbled on the belief that rates will continue to rise and reduce the appeal of the non-yielding asset. For the same reason, the Ramelius Resources Limited (ASX: RMS) share price also tumbled materially last month. Its shares ended the month 18.2% lower than where they started it.
TPG Telecom Ltd (ASX: TPG)
The TPG share price wasn't far behind with a decline of 16%. Investors were selling this telco giant's shares following the release of its half year results. TPG reported an adjusted net profit after tax of $331 million, which was up 3.8% over the prior corresponding period. However, according to a note out of Goldman Sachs, TPG's profits missed by 15%. It also highlighted "disappointing opex and Mobile ARPU growth."
Credit Corp Group Limited (ASX: CCP)
The Credit Corp share price also dropped 16% in August. This followed the release of the debt collector's full year results. While Credit Corp achieved its guidance for FY 2022, it was its outlook for FY 2023 that disappointed. For example, Morgans was expecting FY 2023 net profit guidance of $94 million to $104 million. However, management is targeting $90 million to $97 million. In addition, later on in the month the company announced customer remediation plans after charging people interest that it shouldn't have done.
