Why Accent, DroneShield, Lovisa, and Pilbara Minerals shares are sinking today

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

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Key points

  • Accent Group's shares tumbled over 12% as investors reacted negatively to the retailer's sharp drop in anticipated earnings for FY 2026, largely due to weaker sales and increased promotional pressure.
  • DroneShield's 7% decline is possibly linked to international peace efforts between Ukraine and Russia, which might reduce immediate demand for its counter drone technology.
  • Despite robust sales growth and expansion, Lovisa shares fell nearly 10%, as the market seems focused on short-term volatility rather than the retailer's positive store network expansion and sales performance.

The S&P/ASX 200 Index (ASX: XJO) is ending the week deep in the red. In afternoon trade, the benchmark index is down 1.35% to 8,437.1 points.

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

Accent Group Ltd (ASX: AX1)

The Accent share price is down over 12% to $1.05. Investors have been selling the footwear retailer's shares following the release of guidance for FY 2026. Accent revealed that it expects first half earnings before interest and tax (EBIT) in the range of $55 million to $60 million. This is down sharply from $80.7 million in the first half of FY 2025. For the full year, EBIT in the range of $85 million to $95 million is expected. This will be down from $110.2 million in FY 2025. This has been driven by like for like sales weakness and margin pressure due to promotional activity.

DroneShield Ltd (ASX: DRO)

The DroneShield share price is down over 7% to $1.75. This could have been driven by news that the US is pushing for Ukraine and Russia to sign a peace deal. While peace would clearly be good news for the world, it could mean lower counter drone sales in the near term.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down almost 10% to $31.45. This follows the release of a trading update from the fashion jewellery retailer this morning. Despite what you might expect given the share price weakness, Lovisa has started FY 2026 in a very positive fashion. It revealed that it has increased its store network by 44 stores so far in FY 2026 to 1,075 stores across more than 50 markets. This means it is currently trading from 148 more stores than this time last year. In addition, it advised that global total sales for the first 20 weeks of FY 2026 were up 26.2% on the prior corresponding period. Management notes that it is "benefiting from the continued growth in the store network over the past year, with global comparable store sales up 3.5% on FY25 for this period." This sales growth is ahead of consensus estimates.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down almost 7% to $3.91. Investors have been selling lithium shares on Friday following a poor night of trade for their peers on Wall Street. It seems that with market volatility returning today, investors have been quick to hit the sell button on high risk investments and switch into safe haven assets.

Motley Fool contributor James Mickleboro has positions in Accent Group and Lovisa. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Lovisa. The Motley Fool Australia has recommended Accent Group and Lovisa. 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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