Why Cettire, Metcash, ResMed, and Star Entertainment shares are sinking today

These shares are starting the week in the red. But why?

| More on:
a woman holds her hands to her temples as she sits in front of a computer screen with a concerned look on her face.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. At the time of writing, the benchmark index is down 0.7% to 7,742.6 points.

Four ASX shares that are falling more than most today are listed below. Here's why they are dropping:

Cettire Ltd (ASX: CTT)

The Cettire share price is down a massive 50% to $1.13. Investors have been hitting the sell button today after online luxury products retailer warned that "the operating environment within global online luxury has become more challenging" with heightened levels of discounting. In response to these challenging conditions, the company "has selectively participated in the promotional activity, leading to an increase in marketing costs relative to sales and a decline in delivered margin percentage." Investors may believe that this marks an end of Cettire's explosive sales and earnings growth.

Metcash Ltd (ASX: MTS)

The Metcash share price is down 3% to $3.66. This follows the release of the wholesale distributor's FY 2024 results this morning. Metcash reported a 0.7% increase in revenue to $15.9 billion but an 8.2% decline in underlying profit after tax to $282.3 million. This reflects earnings growth in Food and Liquor being offset by lower earnings in Hardware and increased corporate costs. In light of this, the Metcash board cut its fully franked final dividend by approximately 23% to 8.5 cents per share.

ResMed Inc. (ASX: RMD)

The ResMed share price is down 12% to $28.04. This has been driven by concerns over the efficacy of weight loss drugs on treating sleep apnoea. Eli Lilly And Co (NYSE: LLY) released trial results for tirzepatide, sold under the brand names Mounjaro and Zepbound, that revealed that all primary and key secondary endpoints were met in adults with obesity. The trials demonstrated a mean reduction of up to 62.8% on the apnoea-hypopnea index (AHI), or about 30 fewer events restricting or blocking a person's airflow per hour of sleep, compared to placebo.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is down almost 7% to 45.7 cents. This follows the release of a guidance update from the casino and resorts operator this morning. Due to the challenging economic environment and cost of living pressures, Star Entertainment's performance has weakened in the fourth quarter. As a result, in FY 2024 management expects group revenue to be between $1,675 million and $1,685 million and normalised group EBITDA to be in the range of $165 million to $180 million. The latter represents a significant decline on FY 2023's normalised EBITDA of $317 million.

Motley Fool contributor James Mickleboro has positions in ResMed. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cettire and Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Share Fallers

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Share Market News

This ASX lithium stock is down 79% in 2024, and a director just bought 300,000 shares

This lithium director just bought the dip in a big way.

Read more »

A young male investor wearing a white business shirt screams in frustration with his hands grasping his hair after ASX 200 shares fell rapidly today and appear to be heading into a stock market crash
Share Fallers

Why DroneShield, South32, Whitehaven Coal, and Woodside shares are tumbling today

These shares are under pressure on Monday. But why?

Read more »

a business man in a suit holds his hand over his eyes as he bows his head in a defeated post suggesting regret and remorse.
Share Fallers

Why Aurelia Metals, Australian Ethical, Lifestyle Communities, and Regis Resources shares are falling

These shares are falling heavily with the market. But why?

Read more »

senior couple disappointed and sad at their financial situation
Share Fallers

Down 26% in 5 days, why is this ASX 200 real estate stock crashing again today?

Investors are displeased with the latest announcement from the ASX 200 real estate stock.

Read more »

A man sits in despair at his computer with his hands either side of his head, staring into the screen with a pained and anguished look on his face, in a home office setting.
Share Fallers

Why Alumina, Domino's, DroneShield, and WiseTech shares are sinking today

These shares are having a tough session on Thursday. Why are investors selling their shares?

Read more »

A woman with a sad face looks to be receiving bad news on her phone as she holds it in her hands and looks down at it.
Share Fallers

Why Deep Yellow, DroneShield, Mount Gibson Iron, and Praemium shares are falling

These shares aren't having a good time on hump day. What's going on?

Read more »

woman holding man's hand as he falls representing ups and downs of ASX investing
Share Fallers

What's next for Droneshield stock after Tuesday's 22% drop

DroneShield shares crashed yesterday. What's next for the company?

Read more »

drone stuck in a tree representing crashing Aerometrix share price
Share Fallers

Big ASX news! DroneShield share price crashes 31%

DroneShield shares are enduring a stunning fall from grace today.

Read more »