The company on Friday said it wanted to pay a 10-cent fully-franked special dividend to its shareholders, but only if participation in the company's dividend reinvestment plan (DRP) reached 80%.

The 10-cent special dividend would constitute an extra 8.7% fully-franked yield for shareholders, on top of the company's current yield of 4.84%, according to the ASX website.

How to pay out dividends without depleting cash

Speaking at the company's annual general meeting in November, Chair Murray d'Almeida explained the conundrum facing the company.

He said that one of the issues shareholders regularly brought up was the significant amount of franking credits accrued by the company, and how these could be passed back to shareholders.

As Mr d'Almeida said:

The franking account is accumulated through tax paid by the company and represents value that could be distributed to shareholders by way of dividends. ECP has accumulated a very robust franking balance after multiple years of strong returns, particularly utilising the leveraged portfolio from the convertible note raising. The franking account balance allows the board to maintain our fully franked dividend payments even during periods of lacklustre portfolio performance, however given the market movements over the last few years there has been substantial credits accumulated in excess of normal prudent management.

But, Mr d'Almeida said, the challenge was how to distribute the franking credits without depleting the company's cash balance for investment, "and therefore shrink the size of ECP".

As such, the company has come up with what it says is a "truly unique" approach.

The company on Friday said it would pay out the special dividend, but only if 80% of its shares were enrolled in the company's dividend reinvestment plan (DRP).

As the company said:

The rationale behind the DRP criteria is to ensure the company can continue growing its overall size yet still provide shareholders with access to the franking credits.

Level well short at the moment

The company stated that the DRP participation rate was currently at 36.7%, and it encouraged its shareholders to contact its share registry and sign up in an effort to reach the 80% mark.

ECP added that it would keep its shareholders apprised of progress towards the 80% hurdle when it released its net tangible asset report each month.

ECP shares were steady at $1.14 on Friday, with no trades going through by about noon. The company was valued at $21 million at the close of trade on Thursday.  

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But, there's a significant difference between a dividend yield of 5% and something that pays more than 10%.

Sometimes yields can be mirages because they may be old yields that are about to be cut.

However, the two businesses below are predicted by experts to pay huge dividend yields in the next financial year.

So, let's have a look at the two ASX dividend shares that could pay beastly income.

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less is a retailer of apparel that aims to offer quality products at a good price. The company says that it has a vertical retail model, with 86% of sales from its own labels.

Best & Less suggests there is a market opportunity as customers migrate to 'value' products. Management believes the business is positioned to benefit from the current inflationary environment.

The ASX dividend share describes its baby products as a key driver of growth as it establishes long-term relationships based on "creditability and trust". As children grow, Best & Less can offer more products, lengthening the connection with those customers.

The company wants to grow its market share of baby, kids, and women's apparel. Best and Less is also aiming to increase its gross profit margin and store count.

According to Macquarie, the business could pay a grossed-up dividend yield of 18.7% in FY23.

Shaver Shop Group Ltd (ASX: SSG)

Shaver Shop is another ASX retail share that says it's the market leader in a growth sector. It's focused on premium products in DIY grooming, personal care, and hair and beauty appliances for men and women. It boasts that many key brands and products are exclusive to Shaver Shop. Exclusive products generate more than 50% of sales and 60% of gross profit.

The ASX dividend share has built a significant e-commerce presence. It says that around 35% of total sales are online, though it does have around 120 stores across Australia and New Zealand as well.

According to Shaver Shop, the Australia-New Zealand beauty and personal care market is expected to grow from approximately $10 billion to around $12 billion by 2026.

Hair cutting and men's shaver sales have returned to growth in the second half of FY22. Total sales were up 5.7% to 31 May 2022. In FY22, it's expecting to generate at least $16.25 million of net profit after tax (NPAT).

In terms of the dividend, Ord Minnett thinks that Shaver Shop is going to pay a grossed-up dividend yield of 14.7% in FY23 and that it's valued at seven times FY23's estimated earnings.

The post Dividend beasts: Here are 2 ASX dividend shares with expected yields over 10% appeared first on The Motley Fool Australia.

Best & Less Group Holdings Ltd (ASX: BST) is a value-oriented clothing retailer in Australia. Shares in the company have struggled since listing on the ASX last year. On a year-to-date basis, the Best & Less share price is down 36%.

However, there are hints that perhaps an inflationary environment can be a positive for companies like Best & Less.

Inflation-fighting within the ASX All Ords

Unlike other ASX-listed retailers, Best & Less focuses on value-conscious consumers. This strategy has proven well for the company over recent years, generating more than $600 million in revenue. But, this could be primed for a boost.

In November last year, data from Facteus indicated a 65% increase in discount store spending compared to the same time last year. Since then, inflation has worsened — hitting a 41-year high of 8.5% in March in the United States. Meanwhile, Australia reached its highest level since 2009 with an annual increase of 5.1%.

Furthermore, US discount giants Dollar Tree Inc (NASDAQ: DLTR) and Dollar General Corp (NYSE: DG) released positive earnings results in May. Both companies enjoyed double-digit increases in their respective share prices following the news.

In an interview with the US's National Public Radio, Harvard business professor Willy Shih explained the phenomena, stating:

I think it says that a lot of people in this country are feeling the effects of inflation and they are looking for lower prices. And when you're looking for lower prices, that's one of the places you go, especially a place like Dollar Tree, where you now know that everything costs $1.25. So if I'm trying to save money, that's probably a good place to go.

It is possible Best & Less is an ASX All Ords share that could similarly benefit. On 4 May 2022, the company revealed sales were ahead in the fourth quarter compared to the prior corresponding period. If more consumers look to cut household costs, a value apparel option such as Best & Less might see increased spending.

What else?

As my colleague Tristan Harrison covered, Macquarie is expecting Best & Less to dish out a decent dividend. If analysts at the investment bank are right, shareholders could land a dividend that equates to a grossed-up yield of 16%.

The Best & Less share price is currently fetching $2.64 per share.

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Businesses that have low price-to-earnings (P/E) ratios and also have relatively high payout ratios can translate into high dividend yields. This can really boost investment income for investors.

High dividend yields aren't everything though. I also want to look for businesses where the earnings look compelling as well. Otherwise, a dividend yield can turn into a dividend trap. If a dividend is cut then the yield is obviously not as attractive anymore.

With that in mind, I think these are two ASX dividend shares with good-looking dividends.

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less is an ASX retail share that has a national network of stores. Its main target customers are mums and families.

I think Best & Less has a promising future. The company is looking to grow in a number of different ways including growing its market share of the baby and kids market. It also wants to improve its apparel offering for women, increase its digital capabilities, and expand the store network.

It's looking to both upsize existing locations as well as add between 15 and 25 net new stores over the next three years.

In my opinion, this ASX dividend share could see more customers attracted to its value offering if family budgets are getting tighter due to inflation. It recently updated the market to say that it was seeing sales growth in the fourth quarter of FY22.

How big could the dividend be? The broker Macquare has estimated a dividend which equates to a grossed-up dividend yield of 16%. Even if the yield is only 10%, that's still a very good-looking yield in my opinion.

South32 Ltd (ASX: S32)

South32 is one of the larger ASX mining shares with a market capitalisation of almost $22 billion.

It produces a number of commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal, and manganese.

Commodity prices are very hard to predict. However, an inflationary environment can be helpful for resource shares in my opinion.

This ASX dividend share is making good profit and cash flow right now, which is helping lift dividend payouts.

In the recent FY22 half-year result it increased its ordinary dividend by 521% to 8.7 US cents per share.

With the diversification and strength of South32's commodities, I think its dividends can continue to be attractive in the medium-term.

The broker Macquarie thinks that South32 could pay a grossed-up dividend yield of 12.2% in FY23.

The post I think these 2 high-yield ASX dividend shares are buys in June appeared first on The Motley Fool Australia.

Businesses that have low earnings multiples are sometimes viewed as 'cheap' if they are expected to grow earnings. This can also lead to a high dividend yield if the ASX shares have a relatively high dividend payout ratio.

Here are two that experts rate as buys:

Best & Less Group Holdings Ltd (ASX: BST)

Best and Less is an apparel retailer which aims its 'affordable' products at mums and families.

The company is rated as a buy by the broker Macquarie, with a price target of $4.10. That suggests a possible upside of around 30%.

While the first half of FY22 was affected by COVID lockdowns, there were some statistics that showed improvement. The gross profit margin improved by 210 basis points to 50.8%. The cost of doing business (CODB) decreased by 7% to $115.4 million, however net profit after tax (NPAT) did drop by 21.3% after a 13.8% decline in revenue to $287.5 million.

According to Macquarie, the Best & Less share price is valued at under 9 times FY22's estimated earnings and around 8 times FY23's estimated earnings.

Macquarie expects the Best & Less dividend yield to be high. In FY22, the grossed-up dividend yield is expected to be 12.4%. Then, in FY23, Macquarie expects the Best & Less grossed-up dividend yield to be 12.9%.

The cheap ASX share has a number of strategies to keep growing the business including increasing its market share in 'baby and kids', improving the womenswear offer, investing in online capabilities and securing new store sites.

Adairs Ltd (ASX: ADH)

Adairs is a retailer of homewares and furniture through three different brands: Adairs, Mocka and Focus on Furniture.

The business has a number of plans to grow its operations.

Adairs says that its larger stores are much more profitable than its smaller format stores. So it's working on upsizing its stores in certain locations.

The business has opened a new national distribution centre. This is aimed to increase efficiencies, improve stock flow, allow it to fulfil more online orders and save on costs.

It's aiming to grow its membership numbers because members typically spend more and are more loyal.

The cheap ASX share also plans to expand the Focus on Furniture store network in Australia, as well as grow its online sales.

It's currently rated as a buy by the broker Morgans. The Adairs share price is valued at 7 times FY23's estimated earnings. Adairs has a projected grossed-up dividend yield of 13% for FY23.

The post 2 cheap ASX shares to buy in May: Experts appeared first on The Motley Fool Australia.

But just because a company pays a dividend, this doesn't automatically make it worth owning.

Here are two ASX dividend shares that are liked:

GQG Partners Inc (ASX: GQG)

GQG is one of the largest fund managers on the ASX. The US-based manager runs a number of different investment strategies including global shares, international shares, US shares and emerging market shares.

The business is rated as a buy by the broker Morgans with a price target of $2.15. That implies a potential rise of around 40%. The broker thinks it's good value and recognises that its quarterly updates continue to show inflows.

GQG recently released its update for the period ending 31 March 2022. Over the month, it showed that funds under management (FUM) rose from US$89.8 billion to US$92.9 billion. For the three months to 31 March 2022, the ASX dividend share experienced net inflows of US$3.4 billion despite an "extremely challenging macro environment".

In FY23, Morgans thinks that GQG is going to pay a dividend yield of 8.4%. In FY22, it could pay a yield of 7.8%.

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less describes itself as a leading value apparel specialty retailer with a physical store network of 245 stores and a "fast-growing" online offering. Its aim is to be the number one choice for families buying baby and kids' value apparel in Australia and New Zealand through two brands: Best & Less in Australia and Postie in New Zealand.

Despite all of the store closures during the first half of FY22, the company achieved growth with some of its reported financial statistics.

Like-for-like sales were up by 0.1% and online sales increased by 24%. Its gross profit margin went up by 210 basis points to 50.8%. It achieved its 2021 calendar year prospectus forecasts for earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit after tax (NPAT).

With that result, the ASX dividend share declared a maiden interim dividend of 11 cents per share.

The company is focused on executing its growth strategy in the second half, by continuing to grow its market share in 'baby' and 'kids', improving the womenswear offer, investing in its online capabilities and securing new store sites.

It's currently rated as a buy by the broker Macquarie with a price target of $4.10. That implies a potential upside of around 30% over the next year.

Macquarie believes that the Best & Less share price is valued at under 9 times FY22's estimated earnings with a projected grossed-up dividend yield for this financial year of 12.4%.

The post Brokers love these 2 ASX dividend shares right now appeared first on The Motley Fool Australia.

At the time of writing, the Best & Less share price is $3.68, 8.88% higher than its previous close.

Best & Less share price surges on half year earnings

• $287.5 million of revnenue – down 13.8% on that of the first half of financial year 2021
• Net profit after tax (NPAT) of $20 million – down 21.3%
• Pro forma earnings before interest, tax, depreciation, and amortisation (EBITDA) of $30.6 million – down 20.3%
• 11 cent fully franked interim dividend announced

Best & Less delivered what the company described as a "robust" performance over the first half, despite losing 9,437 trading days – representing 21.3% of total trading days – due to COVID-19 lockdowns and restrictions.

While the company's revenue fell, its like-for-like sales increased 0.1% and its online sales were boosted 24%.  

Additionally, its gross profit margin recorded a 210-basis points improvement, reaching 50.8%. Meanwhile, its EBITDA margin was strong at 10.6%.

Best & Less' pro forma operating cash flow came to $16.4 million. Its net cash position at the end of the half was $31.1 million.

Finally, it has announced its maiden 11 cent dividend in line with its policy to pay out 60% to 80% of NPAT.

What else happened during the half?

As COVID-19 outbreaks raged, Best & Less' stores struggled with lower foot traffic ahead of the peak December holiday trading period.

In response, the company right sized and moved inventory to offset the impact of sales fall out from lost trading days.

It also lowered its cost of doing business by 7% compared to that of the prior comparable period.

On top of that, it onboarded more than 500 new staff, opened 2 new stores, and renewed 41 leases last half.

The company also successfully trialled baby non-apparel lines and launched its Product Lifecycle Management (PLM) system.

What did management say?

Best & Less CEO, Rodney Orrock commented on the company's first half results, saying:

To have achieved our [calendar year 2021] prospectus profit forecasts is a great outcome in challenging conditions and is the result of a relentless focus on managing gross margin and costs across the business.

Our omni-channel model continues to provide us with flexibility and our ongoing investment in online is paying off, with online sales rising significantly and conversion rates continuing to improve. We have managed our supply chain and inventory well and are in a strong position heading into the second half as trading conditions strengthen.

What's next?

Best & Less has declined to give guidance for the remainder of financial year 2022, citing ongoing market uncertainty.

However, it did look back at the first 8 weeks of 2022 and forward at its strategies for the near future.

Over the first 8 weeks of the second half, the company's total sales were down 7.6% on those of the second half of financial year 2021.

Though, January and February are normally the retailer's quietest months of the half.

The Omicron outbreak impacted traffic and purchasing behaviour in January, as did delays to the restart of school.

The company expects such impacts will lessen this month and continue improving through the remainder of the financial year.

With a strong inventory position and supply chain, it's ready to trade through the busy Easter and Mother's Day periods.

It will look to grow its market share in baby and kids clothing and its store numbers in the current half. It's also working to improve its womenswear offerings and its online capabilities.

Best & Less is aiming to hold its operating profit margin amid the inflationary environment, supply chain challenges, and workforce pressures.

Best & Less share price snapshot

2022 hasn't been good to the Best & Less share price.

Today's gains included, it has fallen 11% since the start of the year. Though, it's still 53% higher than it was this time last year.

The post 'Great outcome': Best & Less (ASX:BST) share price rockets 9% on maiden dividend appeared first on The Motley Fool Australia.

The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has been underperforming the market over the course of 2022 so far, slumping 9%.

For context, the S&P/ASX 200 Index (ASX: XJO) has fallen 5% over that time.

Here's what the future looks like for Australian retailers and, as an extension, ASX retail shares.

Data highlights tough January and mixed outlook

Data detailing how tough January was for retailers has dropped today, and it's not a particularly pretty picture.

The Commonwealth Bank of Australia (ASX: CBA) announced that its Household Spending Intentions (HSI) index fell 10% last month, with retail spending intentions leading the fall with a 20.9% dip.

However, that fall followed a rallying over the previous months, landing retail spending intentions 4.4% higher than in January 2021.

Additionally, CBA noted credit card data highlighted an uptick in consumer spending in early February.

That's potentially juxtaposed with Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Roy Morgan. They found consumer confidence fell 1.9% over the first week of February.  

ANZ head of Australian economics David Plank said the drop in consumer confidence was likely due to anticipation of rising interest rates and Western Australia's bushfire events, COVID-19 outbreak, and continued border closure.

The pendulum also swung for Australian's financial positions. Just 23% of Australians said their families are 'better off' financially than this time last year – representing a 4 point drop. That's compared to 32% who said their families are 'worse off' – a 4 point increase.  

Looking to the future, 35% – 2 points fewer – believe their families will be better off this time next year. On the other side, 21%  – 3 points more – expect they'll be worse off.

Finally, the latest monthly business survey conducted by National Australia Bank Ltd. (ASX: NAB) found business conditions had fallen 5 points in January with profitability, trading conditions, and employment all slipping lower.

Retail was once again among the hardest hit, falling 38 points.

In more positive news, business confidence rose 15 points in January after falling in December.

NAB chief economist Alan Oster said Australia's economy is experiencing "a period of elevated inflation while supply chain issues remain unresolved".

"Overall, the January survey shows significant disruption to business activity from the spread of the Omicron variant, albeit impacts on businesses were less severe than in past outbreaks," said Oster. "However, we continue to expect a strong recovery as case numbers come down."

How are ASX retail shares performing today?

Tuesday's session brings a mixed performance from ASX retail shares.

The Nick Scali Limited (ASX: NCK) share price has fallen 7% while that of Best & Less Group Holdings Ltd (ASX: BST) and Accent Group Ltd (ASX: AX1) are down 4.1% and 1.9% respectively.

Meanwhile, the Super Retail Group Ltd (ASX: SUL) share price is 2.8% higher, while stock in Adairs Ltd (ASX: ADH) and JB Hi Fi Limited (ASX: JBH) is up 1.3% and 0.6% respectively.

For context, the ASX 200 is currently up 0.8% while the All Ordinaries Index (ASX: XAO) has gained 0.7%.

The post ASX retail shares have slumped in 2022. Could there be more pain to come? appeared first on The Motley Fool Australia.

Let's take a look at what the experts predict might be facing the retail sector and which shares they have got their eyes on.

Why are some experts wary of the retail sector?

Retailers have weathered a "perfect storm" since the beginning of the pandemic, Investors Mutual Limited senior portfolio manager Simon Conn told Livewire.

Consumers were stuck at home with many boosting their incomes with government stimulus. And that extra time and cash often found its way to ASX-listed retailers.

As a result, Conn thinks margins in retail stocks look slightly inflated and valuations "don't reflect more normal underlying running conditions".

And, as consumers enjoy more 'normal' lives in 2022, the sector could be in for a struggle.

Conn's fellow fundie Bruce Williams, Elston Asset Management portfolio manager, is also bearish on ASX retail shares. Livewire quoted Williams as saying:

They've had a period of unbelievable demand because we'd had no other choice… In our view, it meant these companies are actually over-earning.

Williams is concerned retailers might have seen earnings and sales "pulled forward" into the COVID period and could be about to experience a drop in demand.

However, Conn flagged two ASX retail shares that still look cheap in 2022.

2 ASX retail shares going cheap

Conn flagged Myer Holdings Ltd (ASX: MYR) and Best & Less Group Holdings Ltd (ASX: BST) as retail shares that still look very cheap.

"Both stocks have been impacted by the shutdowns and lockdowns, having had stores closed, and their margins haven't been artificially inflated by what's happened," he said. "So, we think both those businesses on price-to-earnings (P/Es) of less than 11, and 6 times in Myer's case, are good opportunities."

The Myer share price has tumbled 8% year to date. It's currently trading at 42 cents. Over the same period, that of Best & Less has slumped 6% to $3.89.

Meanwhile, Williams told the publication that he's waiting to learn what "normal sales" are and the growth rate of said sales.

"For us, it always just comes down to whether the valuation stacks up and we've got a margin for safety built-in there," he said.

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Taking a look at the data, 20 companies on the ASX with a market capitalisation of more than $250 million have experienced a gain of 15% or greater so far this month.

Today, we'll take a look at three of these companies to see what's driving their high spirits.

These ASX shares have made it onto the good list in December

It's the season for giving, and investors like to receive a pleasant surprise as much as anyone else. Fortunately, the shareholders of the next three companies have been treated to share price gains of more than 15% in December alone.

Best & Less Group Holdings Ltd (ASX: BST)

The first ASX share charging towards Christmas with strong share price appreciation is Best & Less. Since the beginning of the month, shares in the clothing retailer have rallied 15.3%.

The lift comes after the company experienced a steep 27% selloff in its shares from 9 November to 26 November. While the market seemed put off by Best & Less's underwhelming trading update in mid-November, the sentiment has shifted.

Late last month, the company shared its annual general meeting presentation. Positively, those slides contained promising performance for Best & Less online sales. In fact, online sales were reportedly up 33.5% on FY20. Similarweb's traffic overview shows Best & Less website visits at 2.42 million in November, compared to 1.9 million in July.

DGL Group Ltd (ASX: DGL)

The next ASX share climbing down the chimney to make its way onto this list is DGL Group. It has been a solid month so far for the chemical supplies company, rising 18.3% since 1 December.

A shortage of the diesel fuel additive AdBlue could be driving heightened awareness of DGL Group. The company is Australia's largest supplier of the emission-reducing mixture, though supplies are quickly dwindling. Hopefully, an agreement reached between Incitec Pivot Ltd (ASX: IPL) and the federal government should prevent a crisis.

Neuren Pharmaceuticals Ltd (ASX: NEU)

Finally, we've left the biggest gift giver for last — Neuren Pharmaceuticals. This ASX-listed biopharmaceutical share has more than doubled in value since the merry month kicked off. The Neuren Pharmaceutical share price has rewarded its shareholders with a 104% gain.

The exhilarating surge in share price followed the company's announcement of positive phase three clinical trial results. Specifically, Neuren's application of trofinetide to treat young women with Rett syndrome yielded promising data. As a result, the treatment will begin to move through the regulatory process for approval.

The post 3 ASX shares giving the gift of gains heading into Christmas appeared first on The Motley Fool Australia.

At the time of writing, Best & Less shares are swapping hands for $3.41, down 2.57%.

Best & Less fails to live up to expectations

A likely catalyst for today's fall is the shock announcement that Best & Less will not meet its prospectus pro forma forecasts for the first half of FY22. In response, investors have sold off the company's shares on the back of a mixed performance.

According to the update, Best & Less revealed COVID-19 related disruptions have continued to impact its retail stores. Government-mandated restrictions had forced the company to close its doors across Australia and New Zealand.

As such, Best & Less lost a total of 9,272 trading days in FY22, equivalent to 27.5%. The wider lockdown has significantly exceeded the company's previous projections, in which it anticipated restrictions until the end of Q1 FY22.

Weighing further on trading conditions, customer shopping behaviour remains cautious despite all stores recently reopening. Best & Less is hopeful that the Christmas period will bring shoppers back to the retail environment.

On a positive note, for the 12 weeks ending 14 November, like-for-like (LFL) sales have improved by 5.6% on FY21. In addition, online sales grew 34.9% over the same period.

For FY22 year to date, however, like-for-like sales are down -1.3% compared with FY21.

Pleasingly, gross profit margin percentage remains ahead of the company's prospectus forecast. Inventory, operating costs, and cash flow are being carefully controlled by management.

As a result, the first half of FY22 is expected to miss Best & Less' targets. This relates to revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), and net profit after tax (NPAT).

Nonetheless, provided there are no adverse events, the company is predicting to hit prospectus forecasts for the current calendar year. The numbers include pro forma EBITDA and NPAT of $62.4 million and $41.3 million, respectively.

Recap on the Best & Less share price

Since listing on the ASX in late July, Best & Less shares have gained almost 60% for the 3.5 months. The company's share price reached a record high of $4.33 last week, before treading lower.

On valuation grounds, Best & Less presides a market capitalisation of roughly $428.75 million, with approximately 125.37 million shares outstanding.

The post Best & Less (ASX:BST) share price backtracks on earnings miss appeared first on The Motley Fool Australia.

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

Best & Less Group Holdings Ltd (ASX: BST)

The Best & Less share price is down 2.5% to $3.41 following the release of a trading update. That update reveals that the retailer has felt the impact of COVID-19 lockdowns. As a result, its like for like sales are down -1.3% financial year to date. Management revealed that it has lost 9,272 trading days so far in FY 2022. This is the equivalent to 27.5% of total trading days.

BHP Group Ltd (ASX: BHP)

The BHP share price is down 2% to $36.73. This is despite there being no news out of the mining giant. However, today's weakness appears to have been driven by a poor night of trade for most commodity prices. Coal, iron ore, aluminium, copper, and nickel all fell during overnight trade.

Mesoblast limited (ASX: MSB)

The Mesoblast share price is down 5.5% to $1.79. This decline appears to have been driven by profit taking following some very strong gains on Monday. Investors were buying the biotech company's shares after the release of a promising study update.

Nearmap Ltd (ASX: NEA)

The Nearmap share price is down 3% to $1.75. A number of tech shares are falling today amid broad weakness in the sector. Today's decline means the aerial imagery technology and location data company's shares have now fallen almost 20% since this time last week. This has been caused by the release of its guidance for FY 2022.

The post Why Best & Less, BHP, Mesoblast, and Nearmap shares are falling appeared first on The Motley Fool Australia.

Despite the broad market's downturn, these 3 ASX shares have smashed it out of the park today, with each nudging past its prior 52-week high.

Let's investigate further.

National Australia Bank Ltd (ASX: NAB)

Shares in banking giant NAB popped from yesterday's close to hit a new 52-week high of $30.30 today.

After the release of its full year results, investors are eager to claim a spot in the bank's share register.

Not surprising considering NAB recognised a 77% increase in its cash earnings for the year to $6.56 billion. The bank attributes this to strengths in all its operating segments, including corporate, business, and private banking.

The market has responded positively to the bank's FY21 performance today, sending its share price into the green directly from the open.

Brokers have responded positively too with both Goldman Sachs and JP Morgan reiterating their buy and overweight ratings on the NAB share price respectively.

Both firms like NAB's balance sheet expansion and see a strong earnings outlook for investors to bite down into for the coming periods.

JP Morgan, for instance, reckons NAB has "a return on equity profile second only to CBA in the major banks".

Shares in NAB were trading at $30.07 at last peek, currently 4% higher from the open.

Megaport Ltd (ASX: MP1)

Megaport's share price nudged its 52-week high directly from the open today before retracing down into negative territory shortly afterwards.

It has since reclaimed some territory and is now inching 0.12% higher at $20.33 – a short distance off its single-year high of $20.88.

Zooming out, we see that Megaport shares have been trudging northwards since early October, ahead of the S&P/ASX All Technology Index (ASX: XTX).

The index, of which Megaport is a constituent, has gained almost 7% since coming off a low last month. During the same period, Megaport also bounced off its low and has climbed more than 28%.

This comes after the global elastic interconnection services provider released its trading update last month. Investors now seem satisfied Megaport's future earnings outlook appears bright.

As investors continue bidding up the Megaport share price, analysts at Macquarie Group Ltd (ASX: MQG) reckon the company could climb another 20% and reach a target of $24.

The broker arrives at this valuation from its own modelling that forecasts Megaport's port utilisation to hit 75% by FY24, up from 47% in FY21.

It also likes Megaport's Network-as-a-Service business model that has attracted customers such as eBay, Uber, and Zoom.

Best & Less Group Holdings Ltd (ASX: BST)

Best & Less shares shot past its 52-week high today, topping at $4.33 before swinging back down into the red in afternoon trade.

At the time of writing, shares in the apparel and retail business are changing hands at $4.02 apiece, almost 4.5% down on the day.

Notably, the Best & Less share price has gained around 10% in the last week, despite no market sensitive information from the company.

However, both the S&P/ASX 200 Consumer Discretionary index (XDJ) and the S&P/ASX 300 Retailing index (AXRTKD) have also gained steam in the past week, indicating strengths in the broad sector.

Investors are piling into retail and consumer discretionary shares as the economy slowly begins to reopen from COVID-19, alongside the rest of the world.

Many individual and institutional investors are betting on a 'reopening' trade to capitalise on this momentum.

The post Race to the top: These 3 ASX shares all smashed new 52-week highs today appeared first on The Motley Fool Australia.

In the space of 5 trading days, shares in the clothing retailer have marched 18.9% ahead. This continues the successful trend that Best & Less has experienced since its ASX-listing in July. The company's share price has surged more than 38% in its 51 days of publicly listed life.

Right now, the Best & Less share price is swapping hands for $3.32 apiece, up 2.47%.

Let's inspect the company and gain an understanding of what has propelled its shares higher recently.

Is no news good news?

Despite the Best & Less share price ascending to new all-time highs, the last week has entailed not much at all. This could be a positive for investors. It appears the business is focusing on the task at hand and executing accordingly.

The period of uneventfulness has ensued following the company's release of its full-year results for FY21. Impressively, Best & Less exceeded its prospectus forecasts on all key metrics. This included increasing revenue by 6.1% to $663.2 million year-over-year.

Perhaps, even more, astonishing, the company's net profit after tax skyrocketed 191.9% to $47 million. This milestone accomplishment surpassed its prospectus forecast by ~18%. This demonstrated that Best & Less is a formidable ASX-listed retailer that is able to turn a hefty profit.

It is possible that more investors are now paying attention and take a closer look at the retailer. If so, it could be warranted considering the fundamentals on display.

For example, at its current market capitalisation of $406.2 million, Best & Less is trading on a price-to-earnings (P/E) ratio of 8.6 times. In comparison, ASX-listed company's that Best & Less considers competitors are fetching much richer earnings multiples, as shown below:

• Baby Bunting Group Ltd (ASX: BBN) with a $675 million market capitalisation trades on a 40 times 12-month trailing P/E ratio
• Reject Shop Ltd (ASX: TRS) with a $233 million market capitalisation trades on a 28.4 times 12-month trailing P/E ratio
• H & M Hennes & Mauritz AB (STO: HM-B) with a $40.5 billion market capitalisation trades on a 48.2 times 12-month trailing P/E ratio

It would seem that the broader market is pricing in low to no growth in the near term for Best & Less by comparison. Although, the company has already committed to 4 net new stores in FY22 to date.

Best & Less share price unfazed by lockdown impact

It also appears investors are willing to look beyond the immediate COVID-19 impacts on retail shares. In July, the Australian Bureau of Statistics reported a 2.7% month-on-month fall in retail sales.

Today, National Australia Bank Ltd. (ASX: NAB) has shared its forecast for retail sales in August. Unfortunately, it's not looking pretty. In its note, NAB stated it expects an additional 2.7% month-on-month reduction in retail sales for August due to lockdowns.

These difficult conditions were also reflected in an FY22 trading update released by Best & Less today. According to the release, for the first 8 weeks of the new financial year, total sales were down 25.7%. Similarly, like-for-like sales were down 11.7% compared to FY21.

Despite this, the Best & Less share price is climbing higher today.

The post Why the Best & Less (ASX:BST) share price has surged 19% in a week appeared first on The Motley Fool Australia.

Last week, we looked at how the inaugural earnings reports of two recent ASX IPOs – Airtasker Ltd (ASX: ART) and Doctor Care Anywhere Group plc (ASX: DOC) – were received by investors. Today, we'll look at two additional ASX IPOs which have recently reported their first earnings to the markets.

Best & Less Group Holdings Ltd (ASX: BST)

Although Best & Less has been a staple retail name in Australia for decades, it has only recently made its ASX debut in its current form. Yes, Best & Less had its ASX IPO back in late July. In the month or so it has been on the ASX boards, Best & Less shares have performed exceptionally well, rising more than 17%.

This retailer reported its inaugural earnings for the 2021 financial year (FY21) just yesterday, and they make for some interesting reading. As my Fool colleague Brooke covered yesterday afternoon, Best & Less reported revenue growth of 6% over FY20 to $663.2 million. Earnings before interest, tax, depreciation, and amortisation (EBITDA) came in at $71.6 million – up 165%. While net profit after tax was $47 million, up 191%.

The Best & Less share price has responded very positively today, up a healthy 2.18% at the time of writing to $2.81 a share.

Cobram Estate Olives (ASX: CBO)

Olive oil company Cobram is another recent addition to the ASX boards. Cobram only had its ASX IPO back on 11 August. And like Best & Less, it's been going pretty well so far. Since its debut, Cobram shares have climbed a healthy 10.2%.

Cobram reported its first earnings report yesterday afternoon as well. Although total olive oil sales were flat year on year ($140 million for FY21, compared with $140.7 million for FY20), the company did generate $22.1 million in cash from operations, up from $13 million for FY20.

Cobram also reported $70.3 million in group EBITDA for FY21, which was up from $19.7 million the previous year.

Overall, the company was able to post a net profit after tax of $32.6 million, which was up substantially from FY20's net loss of $32.7 million.

The Cobram share price hasn't reacted to its earnings quite as optimistically as Best & Less though. Cobram shares are currently down 0.24% today to $2.06 a share.

The post These recent ASX IPOs have just reported for the first time. How'd they go? appeared first on The Motley Fool Australia.

At close, the Best & Less share price finished at $2.75, 3% lower than yesterday's closing price.

Best & Less share price slumps despite 190% profit boost

Investors drove the Best & Less share price lower in spite of the clothing retailer reporting the following key highlights from its FY21 performance:

• $663.2 million of revenue, 6% more than that of FY20.
• Net profit after tax of $47 million, up 191%.
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) of $71.6 million – up 165%.

Best & Less beat its prospectus forecasts across all key metrics in FY21.

It saw a gross profit of $279.3 million.

The company ended the period with $35.7 million of cash and received $14.1 million of JobKeeper over the period.

What happened in FY21 for Best & Less?

If you're keen to know how the Best & Less share price performed during FY21, you may be disappointed. That's because the Best & Less initial public offering (IPO) occurred after the financial year's end. Those interested can read all about the company's ASX debut here.

During FY21, Best & Less aimed to boost its online sales and its strategy appeared to pay off.

The company's online sales grew by 33.5% in FY21, representing 9.2% of all sales. The increased online sales came after Best & Less introduced click-and-collect and ship-from-store facilities.

Additionally, the company sold nearly 90 million units in FY21.

Best & Less' loyalty programs grew by over 400,0000 members in FY21. The company's loyalty programs had around 1.7 million members as of June 30, 2021.

Best & Less also opened 2 new stores, relocated 6 stores, and closed 7 stores. It ended the period with 245 stores.

The company also published its first modern slavery statement during FY21 and made progress on its living wage commitments. During the period, Best & Less conducted 217 factory audits to ensure compliance across its supplier base.

It also initiated a workers grievance hotline to protect those employed in its suppliers' factories and provide them with a voice directly to the company.

The company also supported 173 different charities through Good360 and partnered with Drought Angels.

What did management say?

Best & Less' CEO Rodney Orrock commented on the results driving the company's share price lower today, saying:

Delivering a record profit and exceeding our Prospectus forecasts in all key metrics, with EBITDA and NPAT ahead 18.0% and 18.1% respectively, is an endorsement of our strategy, leadership in the value retail apparel segment, particularly baby and kids' categories and our omnichannel sales model.

Our strong like-for-like sales growth of 10.8% in FY21 reflects the success of our differentiated customer value proposition of 'twice the quality at half the price'. The robust performance of our core categories, including baby which grew by over 15%, as well as underwear and sleepwear, further highlights the defensive characteristics of our business…

In this challenging environment the deep retail sector experience of our management team pays off, enabling us to respond effectively to rapidly changing conditions. I would like to thank all of our team members for their commitment to providing excellent service, our suppliers for their support during a challenging period and our customers for their continued loyalty.

What's next for Best & Less?

Here's what investors keeping an eye on the Best & Less share price need to know:

The company has been hit hard with COVID-19 restrictions since the end of FY21, with approximately 19.9% of Best & Less' potential trading days being lost due to government-mandated closures. Additionally, stores allowed to remain open have seen reduced foot traffic.

Between 30 June and 22 August, the company's total sales are down 25.7%.

However, over the same period, the company's online sales have grown by 6.8% from FY20 and by 107.5% against the same period 2 years ago.

44 of the company's NSW stores opened again yesterday, in line with government restrictions.

Still, to accommodate lost income, Best & Less is undergoing a capital and hiring freeze and its senior management team has voluntarily reduced their salaries by 20% until the end of lockdowns.

The company is also negotiating with its landlords to "appropriately share the burden of the mandated store closures".

Despite the current struggles, Best & Less expects to achieve its prospectus' EBITDA and net profit after tax forecasts for the 2021 calendar year. These are $62.4 million and $41.3 million respectively.

Best & Less share price snapshot

Since Best & Less listed on the ASX, its share price has gained 15%. Its shares are also going for 27% more than its prospectus' offer price of $2.16 apiece.

The post Best & Less (ASX:BST) share price slides despite record profit appeared first on The Motley Fool Australia.

Best & Less shares are now exchanging hands at $2.32 apiece, a 6.89% jump on the float price of $2.16.

Let's explore how it has unfolded for Best & Less so far.

Quick recap on Best & Less

Best & Less Group, made up of the brands Best & Less in Australia and Postie in New Zealand, is a retailer specialising in baby and kids' apparel.

The company generates 86% of revenue from its proprietary brands, all designed in house. Its clothing is then distributed for sale across 246 physical stores and online.

The group recorded unaudited sales revenue of $663 million for FY21, beating the prospectus forecast of $658 million.

Best & Less IPO

Best & Less listed on the ASX today after a "successful public offering" in which the company raised $60 million on a valuation of $2.16 per share.

At this price, its market capitalisation was $271 million. Demand for its shares was "well supported by institutional and retail investors", according to the company.

Best & Less shares jumped to an intraday high of $2.31 after entering the secondary market.

For context, the S&P/ASX 200 Index (ASX: XJO) has posted a return of 0.07% today.

Regarding guidance, Best & Less sees "FY21 pro forma [earnings before interest, tax, depreciation and amortisation] EBITDA to exceed the pcp [prior corresponding period] by over 100% and to outperform the prospectus forecast…by approximately 15%".

The company also finished FY21 with a cash position of ~$27 million, approximately 18% ahead of forecasts.

Speaking on the listing, Best & Less chief executive Rodney Orrock said:

Today marks another milestone in the history of Best & Less Group, which has served generations of families across Australia and New Zealand.

Foolish takeaway

The Best & Less share price jumped more than 7% after entering the secondary market today. Best & Less shares trade under the ticker "BST".

The company has a market capitalisation of $282 million at the time of writing.

The post Best & Less (ASX:BST) share price jumps 7% after IPO appeared first on The Motley Fool Australia.