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

KMD Brands Ltd (ASX: KMD)

The KMD Brands share price is down 55% to 7 cents. Investors have been selling the Kathmandu and Rip Curl owner's shares after it raised funds to recapitalise. The company's placement and institutional entitlement offer raised combined gross proceeds of approximately $44.2 million at an offer price of NZ$0.06 per new share. KMD's CEO and managing director, Brent Scrimshaw, said: "We are pleased with the support for the institutional component of the equity raising. The raise will strengthen KMD's balance sheet and position us to continue executing our Next Level transformation. We now look forward to inviting our retail shareholders to participate in the equity raising."

Tamboran Resources Corp (ASX: TBN)

The Tamboran Resources share price is down 10% to 30 cents. This morning, the energy explorer announced flow rates from the Shenandoah South 6H. Despite the market's negative reaction to the results, the company's CEO, Todd Abbott, was pleased. He said: "The SS‑6H flow test has safely and successfully delivered the technical information we were seeking, with the well demonstrating strong, stable performance and low decline characteristics. Over the last five days of the test, we noted behavior of the gas rate similar to the performance of the SS2H ST1 well. This aligns with our view that these wells will continue to clean up with extended production testing and deliver shallower decline profiles in early production."

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is down 1.5% to $9.09. This may have been driven by profit taking from some investors after strong gains over the past 12 months. During this time, the coal miner's shares have risen over 70%.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down 4% to $38.82. Investors have been selling WiseTech Global and other ASX tech stocks today after Donald Trump gave an update on the US-Iran war. It seems that optimism that the war could end very soon is fading, which has led to oil prices rebounding and sentiment shifting negatively. This has led to tech stocks reversing much of the strong gains they made on Wednesday. According to CNBC, Trump has said the U.S. is going to "hit" Iran "extremely hard" over the next two or three weeks.

The post Why KMD, Tamboran Resources, Whitehaven Coal, and WiseTech Global shares are falling today appeared first on The Motley Fool Australia.

At the time of writing, the ASX stock is down over 60% to 6 cents.

Why is this ASX stock crashing?

Today's decline has been driven by the Rip Curl and Kathmandu owner raising funds to help recapitalise.

According to the release, the ASX stock has successfully completed its $6.8 million underwritten placement and the institutional component of its fully underwritten entitlement offer.

The struggling retailer revealed that the placement and institutional entitlement offer raised combined gross proceeds of approximately $44.2 million. It notes that the placement was well supported by a number of existing and new institutional investors, raising the $6.8 million at the offer price of NZ$0.06 per new share.

KMD's eligible institutional shareholders elected to take up approximately 79% of the entitlements available under the institutional entitlement offer.

Furthermore, all of the entitlements not taken up by eligible institutional shareholders and entitlements of ineligible institutional shareholders were sold in the institutional shortfall bookbuild at the same price as the offer price.

The retail component of the entitlement offer will open next week and is expected to raise gross proceeds of $21.1 million.

KMD's CEO and managing director, Brent Scrimshaw, said:

We are pleased with the support for the institutional component of the equity raising. The raise will strengthen KMD's balance sheet and position us to continue executing our Next Level transformation. We now look forward to inviting our retail shareholders to participate in the equity raising.

Results update

The ASX stock also released its half-year results along with its equity raising.

It posted a 7.3% increase in sales to $505.4 million but a statutory net loss of $13.1 million and an underlying loss of $11.5 million.

Unsurprisingly, there was no dividend declared for the first half.

Nevertheless, Scrimshaw was pleased with the performance of the company. He said:

Since launching our Next Level strategy, we have accelerated the pace and quality of execution and returned each of our brands to growth in a short timeframe. Strong early progress has been made against our key initiatives, giving us further conviction in our potential.

We're particularly encouraged by the improved performance of Kathmandu, which has delivered double-digit same store sales growth for the first time in over two years. It's also pleasing to see consumers responding positively to our accelerated product freshness, flow and assortment, along with a renewed focus on innovation. While Rip Curl has navigated more volatile global trading conditions, we remain confident that the brand's repositioning will drive long-term growth and youthful energy, connected to the next generation of core surf and beach consumers.

The post Why is this ASX stock crashing 60% today? appeared first on The Motley Fool Australia.

The company, which owns the Rip Curl and Kathmandu brands, placed its shares in a trading halt on Wednesday last week while it sought to finalise the capital raise, which The Australian reported was initially seeking to raise NZ$100 million.

Capital raise details revealed

The company this morning said it would raise NZ$65.3 million at a 69.2% discount to its last trading price on the New Zealand Stock Exchange, where its shares last changed hands for NZ19.5 cents.

KMD said it would raise NZ$6.8 million from institutional shareholders and another NZ$58.5 million from current shareholders in a fully underwritten offer.

The company has asked that its shares remain suspended from trade while it finalises the institutional tranche of the new share offer.

Sales up but books in the red

On the operational front, the company published its first-half results, with group sales up 7.3% to NZ$505.4 million, but the company posted a net loss of NZ$13.1 million.

Kathmandu was the standout performer for the group in terms of revenue increase, with sales up 12.3% and EBITDA improving from a NZ$12.8 million loss to a NZ$2.4 million loss.

Rip Curl sales were up 4.6% while EBITDA fell 13% to NZ$20.5 million.

KMD Brands Chief Executive Brent Scrimshaw said regarding the result:

Since launching our Next Level strategy, we have accelerated the pace and quality of execution and returned each of our brands to growth in a short timeframe. Strong early progress has been made against our key initiatives, giving us further conviction in our potential. We're particularly encouraged by the improved performance of Kathmandu, which has delivered double-digit same store sales growth for the first time in over two years. It's also pleasing to see consumers responding positively to our accelerated product freshness, flow and assortment, along with a renewed focus on innovation. While Rip Curl has navigated more volatile global trading conditions, we remain confident that the brand's repositioning will drive long-term growth and youthful energy, connected to the next generation of core surf and beach consumers.

The company had net debt at the end of January of NZ$94 million.

On the outlook, KMD said Kathmandu had continued its recent sales momentum in the first six weeks of the second half, "with the key Autumn and Winter trading periods still to come''.

The company added:

Rip Curl and Oboz wholesale order books for 2H FY26 are in line with last year, with the Europe and North America summer season to come. Gross margin expansion is anticipated YOY in 2H FY26, reflecting actions taken to offset the US tariffs, and cycling specific clearance of inventory in the second half of last year.

Oboz is the company's footwear division.

KMD's Australian-traded shares last traded at 15.5 cents, valuing the company at $110.3 million.

The post KMD Brands shareholders to be stung with a hugely discounted capital raise appeared first on The Motley Fool Australia.

The retail brands owner, which operates the Rip Curl and Kathmandu brands, first asked that its shares be placed in a trading halt on March 25, saying it was planning to raise new capital, as well as release its first-half results to the market.

The original trading halt was meant to be in place until Friday.

The company said at the time:

KMD notes that it is effectively conducting an extended book build for a private placement, and there is a risk of material information leaking ahead of the formal announcement of the capital raise. KMD is not presently in a position to make a further announcement regarding the capital raise as the final details are still being determined.

On Friday, the company asked that the suspension of its shares be extended to Monday morning, but then on Monday, it asked for a voluntary suspension of its shares until Tuesday morning.

The company also said at this time it was looking to refinance its existing bank facilities.

While the company has not given any hint as to the size of the capital raise, The Australian was reporting on Monday that KMD was after about NZ$100 million, but was struggling to secure that number, with only about NZ$30 million in commitments so far raised.

The Australian report said that the company was looking to raise funds in the form of preferred securities, which combine features of both equity and debt.

Recent transaction rejected

KMD Brands also last week rejected a deal from US company Stokehouse to buy Rip Curl.

That deal would have involved demerging Rip Curl into a separate entity to be listed on the Australian and New Zealand share markets.

KMD said regarding the proposed deal:

Stokehouse proposed that after the de-merger of Rip Curl from KMD Brands, and its merger with Stokehouse, Stokehouse shareholders would own 22% of the merged entity. This proposed ownership structure is misaligned with the earnings delivered by the Stokehouse and Rip Curl businesses given Stokehouse's immaterial contribution to combined EBITDA, and would unfairly dilute KMD Brands shareholders. In addition, Mr. Naude, the current CEO of Stokehouse, would be Chief Executive of the combined business, and he would lead the business from California.

KMD Brands shares last changed hands for 15.5 cents, which was a 12-month low for the stock.

The company is valued at $110.3 million.

The post What's going on with KMD Brands shares? appeared first on The Motley Fool Australia.

At the time of writing, shares are down 3.13% to 15.5 cents. This adds to a weak run, with the stock now down roughly 35% in 2026.

Here's what's happening.

Results delayed at short notice

Just after the market opened, KMD confirmed it would delay the release of its first-half results.

The company had been scheduled to report on Wednesday, 25 March 2026, but advised it was not in a position to release the results as planned.

Management now expects the results to be released on Thursday or Friday.

While short delays are not uncommon, the timing and lack of detail appear to have weighed on sentiment.

Capital raise planned alongside results

Shortly after the delay, KMD announced it intends to launch a capital raise.

According to the release, the raising will be conducted via a placement and an accelerated renounceable entitlement offer.

The company has already commenced a confidential wall crossing process with select investors ahead of the deal.

KMD has requested a trading halt on both the ASX and NZX while it finalises the structure and terms of the capital raising.

This suggests the raising could be material, though no size or pricing details have been disclosed at this stage.

Management noted strong support from lenders throughout the process, which may help reinforce confidence in the group's financial position.

Balance sheet move in focus

The capital raise comes as KMD continues to navigate a challenging retail environment.

The company has been dealing with pressure on margins, with promotional activity and inventory clearing weighing on profitability.

It has also been managing debt levels and broader funding requirements in recent periods.

Against this backdrop, an equity raise may be aimed at strengthening the balance sheet and improving financial flexibility.

However, capital raisings can dilute existing shareholders, which often contributes to near-term share price weakness.

What to watch next

The immediate focus is on the next two updates due later this week.

First is the release of the delayed first-half results, which should provide updated guidance on trading conditions, margins, and inventory levels.

Second is the structure of the capital raise, including its size, pricing, and any discount to the current share price.

With the stock already down heavily this year, the upcoming earnings release and capital raising terms are expected to shape where KMD shares move next.

The post Trading halt, delayed results, and a capital raise: Why this ASX retail stock is under pressure appeared first on The Motley Fool Australia.

KMD said in a statement to the ASX on Tuesday that it had engaged advisers to assess the concept put forward by Stokehouse, "which involved KMD Brands de-merging Rip Curl into a separate NZX and ASX listed company and subsequently merging Rip Curl with Stokehouse''.

KMD said further in its statement to the ASX:

Stokehouse proposed that after the de-merger of Rip Curl from KMD Brands, and its merger with Stokehouse, Stokehouse shareholders would own 22% of the merged entity. This proposed ownership structure is misaligned with the earnings delivered by the Stokehouse and Rip Curl businesses given Stokehouse's immaterial contribution to combined EBITDA, and would unfairly dilute KMD Brands shareholders. In addition, Mr. Naude, the current CEO of Stokehouse, would be Chief Executive of the combined business, and he would lead the business from California.

Not interested in a deal

KMD said that its board had carefully evaluated the proposal and determined it was not in the best interests of shareholders, "as it does not provide a clear path to enhance shareholder value, as compared to the continued execution of the Next Level transformation''.

The board said there were several reasons for its decision, including that the suite of brands within its own business was highly complementary.

They also said the Stokehouse business had limited scale and profitability and "has significant debt relative to its earnings profile''.

They also said:

There is no new capital being introduced by Stokehouse, and instead the transaction concept relies on a large capital raising by the smaller demerged Rip Curl-Stokehouse entity which would create significant further dilution for KMD Brands shareholders in addition to the dilution they would suffer through Stokehouse shareholders owning 22% of the demerged Rip Curl entity.

No value being created

KMD brands Chair David Kirk said the Stokehouse proposal, "creates no value for shareholders and is challenging from an execution standpoint''.

In addition, the combination of multiple surf brands that directly compete with each other is not a strategy that has proven effective. Our focus remains on executing the Next Level strategy, which has already gained momentum.

KMD Brands shares were 3.2% higher at 16 cents on Tuesday morning. The company's shares were changing hands at a 12-month low of 15.5 cents on Monday.

The company was valued at $110.3 million at the close of trade on Monday.

KMD will release its first-half results to the market tomorrow, 25 March.

The post Which ASX retail company just rejected a deal to buy its Rip Curl stores? appeared first on The Motley Fool Australia.

In a statement to the ASX on Monday morning, the company said that sales at its Rip Curl stores were up 5.6% for the five months to December 25 compared with the same period the previous year, and were up 12.9% across its Kathmandu stores.

Sales of its Oboz footwear line were up 4.5% for the period.

Its total group sales were 7.9% higher for the first five months of the year.

Outlook positive

The company went on to say:

Group wholesale sales for the five months of FY26 year-to-date are 9.4% above last year. Forward wholesale order books remain stable and slightly above last year. In-season buying from key accounts has also been positive.  

The company said its group gross margin year to date was 56.7%, which was about 100 basis points below the same period last year due to the increased amount of promotional activity, "and continued focus by all brands to optimise mix and sell through aged inventory''.

KMD Brands Managing Director Brent Scrimshaw said the company was performing well.

We are pleased with the group's early progress in the execution of its Next Level transformation strategy, in particular trading over the critical Black Friday and Christmas periods. Whilst we are still at the early stages of our transformation, we are encouraged by the improved performance of Kathmandu, with an adjusted flow of fresh innovation planned in the second half which we believe will strengthen our ability to expand gross margin over time. We continue to focus on optimising the balance between sales and gross margin while actively managing our inventory investment.

The company said that it expected first half underlying EBITDA to be in the range of $8 to $11 million, up from $3.9 million for the same period last year.

RBC Capital Markets said the market update was neutral for the company's shares, with the sales growth figures "tracking ahead of expectations across all segments, but "with consensus expectations currently at the top-end of KMD's EBITDA guidance we expect operating expenses are currently tracking ahead of expectations''.

KMD shares were 6.3% higher at 25.5 cents in early trade before settling back to be steady at 24 cents.

The company was valued at $160.1 million at the close of trade on Friday.

The post This retailer has posted a strong increase in sales across the first half appeared first on The Motley Fool Australia.

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

KMD Brands Ltd (ASX: KMD)

The KMD Brands share price is down 3% to 32.5 cents. This follows the release of the retailer's half year results this morning. The Rip Curl, Kathmandu, and Oboz owner reported a 0.5% increase in sales to NZ$470.9 million but a whopping 74.3% decline in underlying EBITDA to NZ$3.9 million. This ultimately led to the company recording an underlying loss after tax of NZ$16.1 million for the period.

Paladin Energy Ltd (ASX: PDN)

The Paladin Energy share price is down almost 11% to $5.72. Investors have been selling this uranium producer's shares following the release of an update on the Langer Heinrich Mine (LHM) in Namibia. Due to a one-in-fifty-year rainfall event, the operation has been disrupted, delaying its ramp up. As a result, management does not expect the LHM to achieve nameplate run-rate guidance of 6Mlb by the end of the year and has withdrawn its production guidance for FY 2025.

Sovereign Metals Ltd (ASX: SVM)

The Sovereign Metals share price is down 14% to 84 cents. This follows the completion of an institutional placement today. The rutile and graphite company revealed that it has received firm commitments for a $40 million placement at an issue price of A$0.85 per new share. This represents a 12.8% discount to its last close price. Proceeds from the placement will be used for development activities at the company's Kasiya Rutile-Graphite Project, located in Malawi. This includes permitting, studies, general working capital, and other corporate purposes.

Tuas Ltd (ASX: TUA)

The Tuas share price is down 20% to $5.01. Investors have been hitting the sell button after the Singapore based telco released its half year results before the market open. Tuas reported revenue of $73.2 million and a maiden net profit after tax of $3 million. While both were up sharply on the prior corresponding period, they appear to have fallen short of the market's expectations. Looking ahead, management believes the company is on track to achieve its first full year profit. Tuas shares remain up almost 25% over the past 12 months despite today's weakness.

The post Why KMD, Paladin Energy, Sovereign Metals, and Tuas shares are falling today appeared first on The Motley Fool Australia.

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

Cettire Ltd (ASX: CTT)

The Cettire share price is down over 1% to $1.42. This online luxury products retailer's shares have had an incredibly volatile year. After starting 2024 at $2.92, Cettire's shares were up as much as $4.90 in February and have now given back these gains and plenty more. So much so, the company's shares are now down 51% since the start of the year. The team at Bell Potter isn't likely to see this as a buying opportunity for investors. After being positive on the company for most of the year, the broker recently downgraded its shares to a hold rating with a $1.45 price target. This is only a touch ahead of where they trade at the time of writing.

Digico Infrastructure REIT (ASX: DGT)

The Digico Infrastructure REIT share price is down 1.5% to $4.49. This data centre focused property company's shares have been out of form since completing an initial public offering (IPO) early this month. The Digico Infrastructure REIT had a listing price of $5.00 per share, which means they are now down by 10% since their IPO. Investors appear to believe its shares were overvalued when listing.

KMD Brands Ltd (ASX: KMD)

The KMD Brands share price is down over 4% to 37 cents. This is despite there being no news out of the Kathmandu, Rip Curl, and Oboz owner today. However, it seems that some investors may believe that the retailer's performance won't have improved during the all-important holiday period. In November, the company released a first quarter update and revealed the sales were down 5.8% during the first quarter.

WiseTech Global Ltd (ASX: WTC)

The WiseTech Global share price is down almost 1% to $123.05. This may have been driven by news that its founder Richard White has been selling down his holding again. The logistics solutions company revealed that White sold over 3.5 million shares through a series of on-market trades, reducing his stake in WiseTech from 37.7% to 36.6%.

The post Why Cettire, Digico, KMD, and WiseTech shares are falling today appeared first on The Motley Fool Australia.

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

Elders Ltd (ASX: ELD)

The Elders share price is down almost 9% to $7.89. Investors have been selling this agribusiness company's shares today after it completed the institutional component of its capital raising. Elders notes that it attracted strong support from both existing and new institutional shareholders and raised approximately $143 million at an offer price of $7.85 per new share. This represents a 9.2% discount to its last close price. Elders is raising funds after entering into an agreement to acquire 100% of the shares in Delta Agribusiness for an enterprise value of $475 million. It provides rural products and advisory services through a network of 68 locations and approximately 40 independent wholesale customers.

KMD Brands Ltd (ASX: KMD)

The KMD Brands share price is down 2.5% to 38 cents. This follows the release of the Rip Curl and Kathmandu owner's trading update at its annual general meeting. The company revealed that group sales were down 5.8% on the prior corresponding period for the first quarter of FY 2025. Rip Curl was the worst performer of the two, reporting a 6.7% decline in sales. Kathmandu sales were down 2.7%.

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down a further 1% to $27.79. This fashion jewellery retailer's shares have come under pressure this week after analysts assessed its store rollouts in FY 2025. The data appears to show that the company has fallen behind expectations so far this financial year. As a result, analysts at Citi sees downside risk to consensus estimates. In light of this, on Monday, the broker downgraded Lovisa's shares to a sell rating from neutral with a reduced price target of $25.05.

Telix Pharmaceuticals Ltd (ASX: TLX)

The Telix Pharmaceuticals share price is down 1.5% to $22.44. This appears to have been driven by the announcement of a new acquisition by the radiopharmaceuticals company this morning. Telix advised that it is expanding its theranostic pipeline with new assets targeting Fibroblast Activation Protein (FAP). It is one of the most promising pan-cancer targets in nuclear medicine. Telix has entered into asset purchase and exclusive worldwide in-licence agreements for a suite of clinically validated FAP-targeting therapeutic and precision medicine radiopharmaceutical candidates developed by Professor Frank Roesch. Telix has agreed a small upfront fee but will pay a further 132 million euros contingent upon achievement of certain clinical development and regulatory milestones.

The post Why Elders, KMD, Lovisa, and Telix shares are dropping today appeared first on The Motley Fool Australia.

In the last two months, we've seen retailers — including Nick Scali Ltd (ASX: NCK), Myer Holdings Ltd (ASX: MYR), and Premier Investments Limited (ASX: PMV) — lament the difficulty of trying to sell while many are hunkering down from amped-up interest rates. As such, falling revenues have been a common sight in recent results.

Yesterday, one ASX All Ords stock took the disappointment up a notch with its final FY24 numbers.

ASX All Ords retailer bleeding in 'challenging environment'

If a 44% share price decline in the past year wasn't disappointing enough, KMD Brands Ltd (ASX: KMD) did one better yesterday. Not only are most of its investors in the red, but the company's net earnings are now, too.

KMD Brands — which owns outdoor brands Kathmandu, Rip Curl, and Oboz — recorded an 11% fall in group sales to $979.4 million. Underlying (which removes one-off costs) operating earnings took a savage 53% hit to $50 million. But the deepest cut arguably lands at the bottom of the company's accounts.

Statutory (which includes one-offs) net earnings cratered from $36.6 million down to a $48.3 million loss in FY24. A fair chunk of the smack came from a $40.3 million one-off impairment in the intangible value of KMD Brands' Oboz operations.

Nonetheless, even if the one-time value scratch is removed, KMD Brands' net profits tanked to a $1.1 million loss from a $43.3 million profit in the prior year. The dispiriting result reflects the company's inability to reduce operating expenses (4%) at the same pace that customers shrank KMD's sales (11%).

KMD Brands Group CEO Michael Daly commented on the hard retailing landscape with an ounce of optimism, stating:

In a challenging sales environment, gross margin remained resilient despite increased promotional activity for Kathmandu. Operating costs reduced year-on-year despite ongoing inflation pressure, and working capital reduced as inventory investments were carefully managed.

Still, the pain of FY24 was apparent across all three segments. Kathmandu sales fell 15%, Rip Curl dropped 7%, and Oboz collapsed 20%. Interestingly, sales in the North America region were hit the hardest (down 15%), while the 'rest of world' region declined the least (down 3%).

Is it improving?

There are glimmers of improvement from the troubled ASX All Ords stock.

A trading update for the first 8 weeks of FY2025 shows a 2% year-on-year uptick in direct-to-consumer (DTC) Kathmandu Australia sales. However, it's not so pretty in New Zealand, with its DTC segment 23% lower from the prior corresponding period.

In the wholesale channel, KMD Brands is seeing double-digit declines improve to single-digit falls (i.e. from >10% to 9% or less).

The ASX All Ords stock finished yesterday 1.08% lower at 46 cents apiece.

The post Down 44% in a year, this ASX All Ords company is officially losing money appeared first on The Motley Fool Australia.

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

Guzman y Gomez (ASX: GYG)

The Guzman y Gomez share price is down almost 5% to $28.58. Investors appear to have been taking profit on Friday after a very strong first session yesterday following the quick service restaurant operator's initial public offering (IPO). Excitement over its IPO led to Guzman y Gomez's shares opening 36% higher than its $22.00 listing price on Thursday. This gave the Mexican food chain a $3 billion valuation and meant that its shares were trading on a crazy multiple of 500x estimated FY 2025 earnings.

KMD Brands Ltd (ASX: KMD)

The KMD Brands share price is down 6.5% to 36.5 cents. This has been driven by the release of a disappointing trading update from the retailer this morning. KMD Brands revealed that its second half group sales were down 8.4% through to the end of May. This reflects a 5.9% decline in Rip Curl sales, an 8.4% drop in Kathmandu sales, and a 21.8% fall in Oboz sales. As a result, the company now expects underlying EBITDA to be approximately NZ$50 million for the full year. This will be down over 50% from NZ$105.9 million in FY 2023.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price is down 6.5% to $56.11. This follows significant weakness in the lithium industry today after the battery making ingredient continued to fall. In addition, the mining and mining services company announced plans to close its Yilgarn Hub iron ore operation this week. Management notes that having carefully considered all options, an assessment confirmed that the continuity of the Yilgarn Hub is not financially viable beyond the end of 2024. It has made the decision to cease Yilgarn Hub iron ore shipments by 31 December.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 4% to $3.07. Investors have been selling the lithium miner's shares following the release of the pre-feasibility study (PFS) for the expansion of production at the Pilgangoora Operation. Management revealed that its PFS determined that production capacity at Pilgangoora Operation could be expanded to more than 2 million tonnes per annum (Mtpa). This would come with an estimated capital expenditure of ~$1.2 billion. And while the study has a good NPV, it is based on long-term lithium price assumptions meaningfully above current levels and Goldman Sachs' forecasts. Also, news of a potentially big increase in production is not necessarily good news when there are forecasts for a lithium surplus.

The post Why Guzman y Gomez, KMD, Mineral Resources, and Pilbara Minerals shares are sinking appeared first on The Motley Fool Australia.

In morning trade, the ASX All Ords share is down 10% to a 52-week low of 35 cents.

Why is this ASX All Ords share crashing?

Investors have been hitting the sell button today after the Kathmandu owner released another disappointing trading update.

As a reminder, during the first half of FY 2024, group sales were down 14.5% compared to the same period last year.

According to today's release, the company's sales in the second half have improved since the end of the first half. However, they are still down compared to the prior corresponding period.

Investors appear particularly disappointed with the performance of the Kathmandu business. Management notes that it has experienced a slower than expected start to the key winter promotional period.

The first three weeks of the winter sale are 11.5% below last year and lower than the improving second half trend. This reflects significant weakness in New Zealand, with Australian sales down in line with current sales trends. They have also improved each week as it progresses further into the winter season.

One positive is that Rip Curl has started its peak summer trade in the Northern Hemisphere. Management notes that direct-to-consumer sales for the USA and Europe for the start of summer are showing positive single digit growth above last year and peak weeks are still to come.

However, Rip Curl and Oboz wholesale customers continue to reduce their inventory in response to the challenging consumer environment.

The sum of the above, is that second half group sales were down 8.4% through to the end of May. This reflects a 5.9% decline in Rip Curl sales, an 8.4% drop in Kathmandu sales, and a 21.8% fall in Oboz sales.

In light of this and based on the most recent sales trends across all brands, the company now expects underlying EBITDA to be approximately NZ$50 million for the full year. This will be down over 50% from NZ$105.9 million in FY 2023.

The ASX All Ords share's managing director, Michael Daly, said:

With six weeks of peak trade still to come, we remain focused on optimising our Kathmandu winter and Rip Curl Northern Hemisphere summer results in a challenging consumer environment. We are seeing a prolonged impact of cost-of-living pressures on consumer sentiment globally but particularly in New Zealand, and we continue to respond tactically to competitive market dynamics. Alongside immediate trading priorities, our focus remains on tightly controlling operating costs, moderating working capital, and maximising cash flows.

The post Why is this ASX All Ords share crashing deep into the red on Friday? appeared first on The Motley Fool Australia.

Six months ago, there were plenty of cheap ASX shares amid a market fearful about inflation and interest rates. Now, it's harder to find many stocks that have fallen heavily over the past 12 months — and there are genuine reasons why many have dropped.

If we can identify a fallen stock that can rebound, there could be a good opportunity. For example, a 50% fall in a share price from $10 to $5 is a very big decline. If that share price can just recover back to the original $10 share price, it'd be a 100% rise from $5 for new investors. That's not guaranteed to happen, though.

The trick is to determine which declines with ASX shares are temporary/cyclical and which ASX shares have been permanently hurt. The temporary sell-offs are where we can find contrarian recovery plays. In my opinion, the stocks below have a decent chance of recovery.

KMD Brands Ltd (ASX: KMD)

KMD is an apparel and footwear business that owns three brands: Kathmandu, Oboz and Rip Curl. In other words, it has a business for winter gear, one for beach and ocean items, and a hiking boots (and other shoes) operation.

As the chart below shows, the KMD share price has fallen 50% over the past 12 months and is almost 70% lower since October 2021.

Its recent FY24 first-half result confirmed what the company has been talking about for a while. Weak consumer sentiment led to a 14.5% fall in sales to $468.6 million, while the underlying net profit turned into a net loss of $6.9 million.

KMD advised that warm weather in Australia and an overreliance on winter-weight products led to the company's disappointing first half.

However, things are starting to look up – sales for February 2024 were down only 3.5% year over year. I don't know how warm the upcoming winter will be, but the company is more optimistic about FY25.

The wholesale customer inventory reduction cycle is expected to end this financial year, and management is positive about the wholesale channel for both Rip Curl and Oboz.

According to Commsec estimates, the KMD share price is valued at just under 7x FY26's estimated earnings with a possible dividend yield of 7.6%.

Accent Group Ltd (ASX: AX1)

This ASX share wants to be the market-leading, digitally integrated retail and distribution business in the "performance lifestyle market for footwear, apparel and accessories across Australia and New Zealand".

It has 17 distribution agreements with global brands, including Vans, Hoka, Kappa, Skechers, Herschel, Sebago, Merrell, CAT, Saucony, Dr Martens, Palladium, Ugg, Autry, Superga, and Timberland.

The company also owns several businesses, including Nude Lucy, Stylerunner, Lulu and Rose, Hype, Glue Store, The Athlete's Foot, and Platypus.

The Accent share price has dropped around 30% over the past year, as we can see on the chart below, making it much cheaper to buy a piece of the ASX retail share.

Sales have been challenged over the past year or so amid the high cost of living, but I believe the ASX share has an appealing outlook with a growing store network. Depending on what happens next, an improving retail picture could be just around the corner.

I recently invested in Accent shares myself because I'm optimistic the company is facing a cyclical situation that can improve.

The post Bear to bull: The ASX shares that could bounce back the strongest appeared first on The Motley Fool Australia.

Shares in the retail company, formerly known as Kathmandu, closed yesterday trading for 48 cents. In morning trade on Tuesday, shares are swapping hands for 47 cents apiece, down 2.1%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.2% at this same time.

This comes following the release of KMD's half-year results for the six months ending 31 December (1H FY2024).

Here's what KMD reported.

(*Note, dollar figures quoted below are in New Zealand dollars.)

ASX All Ords stock sinks amid sliding sales

• Group sales of $468.6 million, down 14.5% year on year
• Underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) of $15.1 million, down 66.8% year on year
• Underlying net profit after tax (NPAT) loss of $6.9 million
• No interim dividend declared; last year was 2.4 cents per share

What else happened with KMD over the half year?

On the plus side of the ledger, though failing to boost the ASX All Ords stock today, KMD reported a 0.10% improvement in gross margin to 58.8%. This was driven by lower freight rates, improved channel mix, improved pricing, exiting low margin business, and new product introductions.

And operating expenses came down by 5.7% compared to 1H FY2023, to $15.8 million.

Still, this wasn't enough to overcome weaker consumer spending and the hit the company's sales took from an unseasonably warm winter in Australia and New Zealand.

As at 31 January, the ASX All Ords stock had a net debt position of $96.2 million with funding headroom of approximately $190 million.

What did management say?

Commenting on the half-year results pressuring the ASX All Ords stock today, CEO Michael Daly said:

Weaker consumer sentiment, the warmest winter on record in Australia and an over-reliance on winter weight product led to a disappointing first half for Kathmandu.

Rip Curl and Oboz are cycling record sales last financial year, and while revenues from the direct-to-consumer channel are showing single digit declines, the wholesale channel has been more challenging for both brands as wholesale customers reduce inventory holdings.

In a challenging sales environment, the group improved gross margin despite currency headwinds, controlled operating costs, and reduced working capital.

What's next?

Looking to what could impact the ASX All Ords stock in the months ahead, Daly said KMD's top priority was improving Kathmandu sales performance heading into the key winter trading months.

"We expect to see progress in the second half and into FY25 as we launch new innovative products, quick to market programs, elevated visual merchandising, increased personalisation through the recently released 'Out There Rewards' and an expanded third-party brand strategy," he said.

KMD also expects its wholesale customer inventory reduction cycle to end this financial year.

Daly said that gives the company "a more positive FY25 outlook in the wholesale channel for both Rip Curl and Oboz."

How has this ASX All Ords stock been tracking?

It's been a tough year for KMD shareholders.

Over the past 12 months, shares in the ASX All Ords stock are down 49%.

The post ASX All Ords stock KMD tumbles as interim dividend cancelled appeared first on The Motley Fool Australia.

It's a difficult retail landscape at the moment, with so many households facing inflation pressures. But, I don't believe the economic environment forever will be tricky forever, meaning this could be the right time to look at beaten-up ideas.

If the share prices of the two cheap ASX dividend shares below have been oversold, the future dividend yields could be huge.

Universal Store Holdings Ltd (ASX: UNI)

Universal Store owns a number of "premium" youth fashion brands. Its businesses and brands include Universal Store, THRILLS, Worship and Perfect Stranger. The company currently operates 100 stores across Australia, and this number is steadily increasing.

The Universal Store share price is still 45% lower than it was in November 2021, which has boosted the dividend yield.

The company has grown its annual dividend each year since 2021, when it first started paying dividends.

In the FY24 first-half results, the company advised it grew its total sales by 8.5%, underlying earnings before interest and tax (EBIT) rose 8.1% to $30.8 million and statutory net profit after tax (NPAT) rose 16.7% to $20.7 million. It grew its interim dividend 17.8% to 16.5 cents per share.

I think the cheap ASX dividend share can keep boosting its store count, particularly the number of Perfect Stranger stores, to help grow profit over time.

According to the projection on Commsec, Universal Store could pay a grossed-up dividend yield of 7.7% in FY24 and 9.7% in FY26.

KMD Brands Ltd (ASX: KMD)

KMD Brands is another ASX retail share related to apparel. It has three brands – Kathmandu, Rip Curl and Oboz.

The KMD share price is down close to 70% from October 2021.

The company is seeing weak consumer sentiment, while the warmest winter on record in Australia has hurt Kathmandu sales. KMD expects to see signs of improvement in the second half of FY24, and in FY25.

The Rip Curl and Oboz brands have suffered from a sizeable reduction in wholesale sales as wholesale clients reduce inventory holdings. However, KMD Brands expects FY25 to have a positive outlook for the wholesale channel.

I think this company can bounce back in the medum-term – it's working hard on improving sales, optimising its gross margin, controlling operating costs and reducing working capital. The very large fall of the KMD Brands share price gives us plenty of margin of safety, in my opinion, when we think about when the company might achieve in FY25 and FY26.

According to the projections on Commsec, the cheap ASX dividend share is valued at 10x FY25's estimated earnings and 6x FY26's estimated earnings.

With that profit generation, KMD Brands could pay a dividend yield of 7.4% in FY25 and 10.7% in FY26.

However, keep in mind that the FY24 dividend yield – the current financial year — could be minimal. It's currently estimated at 4.9%, though I'd warn it could be less than that (or possibly even nothing), depending on what the board decide.

The post 2 cheap ASX dividend shares I'd snap up in a heartbeat! appeared first on The Motley Fool Australia.

In my mind, a value stock is a business that has a relatively low price/earnings (P/E) ratio which could easily be trading on a higher valuation. I like businesses that pay dividends because a low valuation usually means a higher dividend yield – we can get a good return that way.

KMD Brands Ltd (ASX: KMD)

KMD is a business that operates three brands – Kathmandu, Rip Curl and Oboz, which are essentially retailers that are focused on outdoor clothing and footwear, for cold and hot weather. I'll point out that this business is a New Zealand business, but it's listed on the ASX and makes a lot of its sales in Australia, so I'm going to call it a New Zealand (and Australian) value stock.

As you might expect, sales have weakened amid the current inflationary environment and higher interest rates.

The KMD Brands share price has fallen 60% from November 2021, so it's much better value now. I don't think retail conditions are going to be weak forever, though it could take a year or more until households are able/willing to start spending more again.

But, I think KMD Brands is priced at a very cheap level for that possible rebound. According to the projections on Commsec, it's valued at 7 times FY26's estimated earnings and it could pay a possible dividend yield of almost 10% that year.

Lindsay Australia Ltd (ASX: LAU)

This business is a sizeable and growing player in the transport and logistics space. It claims to be a leading national service provider to the agriculture, horticulture and food-related industries. It can assist farmers grow, package, transport and distribute their produce throughout Australia and globally.

Despite steadily growing revenue over the past five years, and focusing on more growth for the long-term, the Australian value stock is priced at a cheap level in my opinion.

According to Commsec, it's priced at 7.2 times FY25's estimated earnings and 6.6x FY26's estimated earnings. It's priced so cheaply that the fairly low projected dividend payout ratio could lead to a grossed-up dividend yield of 8.5% in FY25 and 8.9% in FY26.

The business is priced cheaply, it's indirectly benefiting from the growing population and it offers a large dividend yield. There's also a possibility it could grow via acquisitions, which would boost scale.

Metcash Ltd (ASX: MTS)

Metcash supplies IGA supermarkets around Australia, as well as a large number of independent liquor retailers like Cellarbrations, The Bottle-O, IGA Liquor, and Porters Liquor.

The business has a very promising hardware division which includes Mitre 10, Home Timber & Hardware and Total Tools.

I believe population growth is a useful tailwind for all three of the Australian value stock's main segments, with potential interest rate cuts being a possible booster for hardware earnings.

While it's not as strong as Coles Group Ltd (ASX: COL) or Wesfarmers Ltd's (ASX: WES) Bunnings, I think it's comparable, but trades on a much cheaper P/E ratio.

According to Commsec, the Metcash share price is valued at just 12 times FY25's estimated earnings with a possible grossed-up dividend yield of 8.3% for that year.

It is valued at 11.8 times FY26's estimated earnings with a possible grossed-up dividend yield of 8.6%. Those numbers are attractive to me, which is partly why I recently invested.

The post 3 Australian value stocks to buy right now appeared first on The Motley Fool Australia.

That's painful for the ASX retail share. It's interesting to me that this retail company is down so much when various others have risen strongly in the last few weeks or months like Wesfarmers Ltd (ASX: WES), JB Hi-fi Limited (ASX: JBH), Lovisa Holdings Ltd (ASX: LOV), Myer Holdings Ltd (ASX: MYR), Premier Investments Limited (ASX: PMV) and Temple & Webster Group Ltd (ASX: TPW).

Still, I think KMD Brands could pay significant passive income in a year or two.

KMD Brands is the business behind the businesses of Kathmandu, Rip Curl and Oboz. In other words, its products are for the outdoors when it's cold, the outdoors when it's hot and for hiking.

What's going wrong?

KMD Brands reported in December 2023 a trading update that group sales were down 12.5% year over year, reflecting "ongoing weakness in consumer sentiment".

The ASX dividend stock has had trouble beating its comparable sales after record sales in FY23. Wholesale sales for Rip Curl and Oboz have declined, with retailers reducing inventory holdings in the short term.

At the time of the update, the company said its group underlying earnings before interest, tax, depreciation and amortisation (EBITDA) for FY24 to date was $16 million lower than last year.

One of the positives from that update was that the overall gross profit margin improved, with "operating costs well controlled and actively managed".

It also advised that its group working capital had decreased 10.2% year over year – it's making progress towards its target of 18% of sales for the full year, which the company is expecting to drive strong cash flow generation in the second half.

How big could the dividends be?

When the share price of an ASX dividend stock falls, it boosts the prospective dividend yield. For example, when an ASX share with a 5% dividend yield falls 10%, the yield becomes 5.5%. A company can avoid this becoming a potential dividend trap as long as its fundamentals are sound.

I think KMD's earnings can rebound in FY25 and beyond when retail conditions hopefully improve, particularly if interest rates fall. Demand for KMD's products may not be as consistent as food demand at Woolworths Group Ltd (ASX: WOW), but I think KMD Brands can still make a decent profit in FY24 and then recover in the subsequent years.

Commsec forecast numbers suggest it can make earnings per share (EPS) of 6.5 cents in FY25 and 8.3 cents in FY26, putting it at 9.5x FY25's estimated earnings and 7.5x FY26's estimated earnings.

The low price/earnings (P/E) ratio means the future payouts could be huge. At the current KMD share price, it could pay dividend yields of 7.6% in FY25 and 9% in FY26, according to Commsec.

If the company's earnings can rebound (in the next couple of years) I think there's a good chance the ASX dividend stock could deliver strong outperformance at these levels.

The post 1 ASX dividend stock down 60% to buy right now appeared first on The Motley Fool Australia.

If you're an admirer of the Oracle of Omaha (and, let's face it, who isn't?), you'll likely already appreciate that the price at which you buy your ASX shares is just as important as that at which you sell!

But how to sort the oversold bargains from the falling knives?

For their thoughts, we asked our Motley Fool writers which ASX shares they reckon offer the best-value buying right now. Here is what the team came up with:

6 cheap ASX for February 2024 (smallest to largest)

• KMD Brands Ltd (ASX: KMD), $441.23 million
• Rural Funds Group (ASX: RFF) $860.39 million
• Domino's Pizza Enterprises Ltd (ASX: DMP), $3.57 billion
• Block Inc (ASX: SQ2), $3.73 billion
• IDP Education Ltd (ASX: IEL), $5.38 billion
• Lynas Rare Earths Ltd (ASX: LYC), $5.51 billion

(Market capitalisations as of market close 9 February 2024).

Why our Foolish writers think these ASX stocks offer great value buying

KMD Brands Ltd

What it does: KMD Brands is a retail business that operates three leading brands: Kathmandu, Oboz and Rip Curl.

By Tristan Harrison: The KMD Brands share price is down 33% in the past year and has dropped close to 60% since October 2021.

The company's recent trading update revealed group sales were down 12.5%, reflecting "ongoing weakness in consumer sentiment." Kathmandu's rainwear and insulation categories were down, while wholesale sales for Rip Curl and Oboz also declined as retailers reduced inventory holdings in the short term.

But there were some positives. The group gross profit margin improved, and operating costs were "well-controlled and actively managed".

I think the current KMD share price reflects short-term weakness. Commsec numbers suggest earnings per share (EPS) could rise to 6.5 cents and 8.3 cents in FY25 and FY26, respectively. This puts the stock at 10x FY25's and 8x FY26's estimated earnings, which looks cheap to me. The FY26 dividend yield could also be an attractive 8.75%.

Motley Fool contributor Tristan Harrison does not own shares of KMD Brands Ltd.

Rural Funds Group

What it does: Rural Funds Group is a real estate investment trust (REIT) that owns a large portfolio of farmland and other agricultural assets.

By Sebastian Bowen: The Rural Funds unit price has not had a fun time over recent years. Back in early 2022, units of this REIT were asking for more than $3 each. But today, those same units were going for $2.22 at Friday's close of trade.

Rising interest rates have hurt Rural Funds. As an REIT, this trust uses loans and other financing to help build out its portfolio. With rising rates, this financing has become a lot more expensive. 

Yet, I think this situation has resulted in Rural Funds stock becoming oversold. The REIT operates a strong portfolio of different agricultural assets, including vineyards, cattle and macadamia, almond, and cotton farms. Those are all commodities that have a strong and inelastic market. 

Additionally, Rural Funds is a strong dividend payer, having increased or maintained its quarterly dividend payments since 2017. Today, you can expect a dividend distribution yield of more than 5.28% from this REIT.

Motley Fool contributor Sebastian Bowen does not own units of Rural Funds Group.

Domino's Pizza Enterprises Ltd

What it does: Australian-owned Domino's is the master franchise holder for Domino's Pizza stores in Australia, New Zealand, Belgium, France, the Netherlands, Japan, Germany, Luxembourg, Taiwan, Malaysia, Singapore, and Cambodia.

By Bernd Struben: It's been a rough start to 2024 for Domino's shares, with the stock down 32% year to date. Most of those losses came on 25 January, when shares closed down 31%.

This followed an update that showed significant half-year sales growth in its ANZ home markets and Germany, but was overshadowed by a sales slowdown in Malaysia and Japan.

Management forecast net profit before tax for the half year between $87 million and $90 million, down year on year but up from $74 million in the prior half. It will now focus on delivering the same successful strategies driving growth in ANZ to boost its Asian operations.

The stock should also get a longer-term lift as slowing inflation and falling interest rates boost discretionary consumer spending.

Domino's shares trade on a 2.8% partly-franked dividend yield.

Motley Fool contributor Bernd Struben does not own shares of Domino's Pizza Enterprises Ltd.

Block Inc

What it does: Block Inc is a US fintech that provides payment terminals for small retailers, a consumer finance app, and Afterpay, to name a few of its offerings.

By Tony Yoo: It might be odd calling a stock that's risen 70% since the end of October "oversold". But the fact remains the Block share price is more than 14% down over the past year and 43% lower since April 2022.

The financial services company is on the way up after cleaning up its act in recent months. Management has cut costs, reduced staff share issuances, and generally placed a greater emphasis on cash flow. The revival in the Bitcoin price has helped too, with co-founder Jack Dorsey a firm believer in cryptocurrencies.

All three analysts currently surveyed on CMC Invest rate Block shares as a strong buy.

Tony Yoo does not own shares of Block Inc CDI, but does own Block Inc shares listed on the NYSE.

IDP Education Ltd

What it does: IDP Education is a provider of international student placement services and high-stakes English language testing services.

By James Mickleboro: IDP Education shares have lost almost 40% of their value over the last 12 months after the company was hit with bad news after bad news. This included the loss of its language testing monopoly in Canada and changes to student visas at home and abroad.

While these events have undoubtedly had a negative impact on the stock's near-term performance, I believe the selling has been severely overdone. In light of this, I feel it has created an opportunity for ASX investors to buy a high-quality company with strong long-term growth potential.

Analysts at Goldman Sachs agree with this view and remain bullish on its outlook. The broker highlights that "IEL's fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings (e.g. costs)."

Goldman currently has a buy rating and a $27.60 price target on IDP shares.

Motley Fool contributor James Mickleboro does not own shares of IDP Education Ltd.

Lynas Rare Earths Ltd

What it does: Helmed by Amanda Lacaze, Lynas Rare Earths is one of the largest producers of rare earth elements, which are critical in many of our modern-day technologies. The company owns two highly regarded operations: the Mount Weld mine in Western Australia and a processing plant in Malaysia.

By Mitchell Lawler: The past year has not been kind to the Lynas share price. Coinciding with a drop in the going rate for rare earths, shares in the Australian miner have fallen 35% to reflect the shrinking revenue and profits. 

I'll go out on a limb and say this could all be a temporary weakness in an otherwise strong long-term outlook. Interest rates have constricted the consumer's appetite for electric vehicles recently, but with rates expected to be cut at the tail end of 2024, we may soon see strength again. 

I think Lynas' current valuation is appealing based on the company's recently increased production capacity and the Kalgoorlie facility achieving its first feed-on in December last year. 

Furthermore, management's decision to pursue organic growth over a merger with MP Materials relays a level of confidence among management in the company's own future prospects.

Motley Fool contributor Mitchell Lawler owns shares of Lynas Rare Earths Ltd.

The post 6 oversold ASX shares to buy in February 2024 appeared first on The Motley Fool Australia.

In afternoon trade, the ASX All Ords stock is down 12% to a 52-week low of 66.5 cents.

Why is this ASX All Ords stock sinking?

Investors have been selling this retailer's shares today in response to the release of a disappointing trading update.

According to the release, for the four months ended 30 November, the Kathmandu and Rip Curl owner reported a 12.5% decline in group sales. Management advised that this reflects ongoing weakness in consumer sentiment.

The main drag on its performance has been the Kathmandu brand due to weakness in rainwear and insulation categories in Australia. Kathmandu total sales for FY 2024 year to date are down 21.6%.

Elsewhere, the Rip Curl and Oboz brands reported sales declines of 5.7% and 18.2%, respectively, year to date.

One positive was that its gross margin has improved and operating costs are well controlled and actively managed. However, this hasn't stopped its underlying EBITDA from falling $16 million below last year.

The ASX All Ords stock's CEO and managing director, Michael Daly, remains upbeat. He said:

Black Friday promotions for Rip Curl and Oboz delivered strong sales as these brands continued to deliver good results in direct-to-consumer channels, while navigating short-term weakness in wholesale channels as retailers reduce inventory in uncertain trading conditions. Improvement in Kathmandu's sales performance remains our priority.

We remain focused on optimising gross margin, controlling operating costs, and reducing working capital for all of our brands. We continue to make progress towards our working capital target of 18% of sales for the full year, which is expected to drive strong cash flow generation in the second half year.

The post Guess which ASX All Ords stock is sinking 12% following a poor trading update appeared first on The Motley Fool Australia.