Here are 5 ASX stocks with fluctuating fortunes that have been firmly manifest this reporting season

Here are 5 ASX stocks with fluctuating fortunes (as observed this reporting season)

Baby Bunting (ASX:BBN)

Baby Bunting has a network of baby stores. You’d think a baby store company would be resilient to tough economic times because new parents can’t put off all purchases for their newborns. But what new parents can do is buy them from a store that will offer the lowest price or ‘more bang for their buck’ and this is what they did, going to discount retailers like Big W and Target. This trend caused the company to shed 80% of its value between April 2021 and June 2023.

Although the company’s FY24 sales were down 5% from FY23, investors welcomed the results because the company showed progress towards turning things around. In particular, it reduced inventory by $7m and renegotiated key supplier trading terms. Investors were told to expect a 40% Gross Profit margin, for sales to return to growth in FY25 and a $9.5-12.5m profit for the year ahead.

Vicinity Centres (ASX:VCX)

Vicinity is an owner of shopping centres, headlined by Melbourne’s Chadstone shopping centre but including others including QVB in Sydney. It has been a difficult 5 years with COVID-19 lockdowns, subdued activity in tourist hotspots and CBDs impacting sales, as well as the growth of eCommerce.

But the FY24 results showed a turning point. The company beat its guidance, recorded occupancy at pre-pandemic levels and told investors its tenants were locking in longer-term leases that were at a positive spread. Its statutory profit was more than double the year before, and it paid a distribution yielding over 5%.

A2 Milk (ASX:A2M)

Some may say A2 Milk does not belong on this list because it has never been the same since the pandemic lockdowns. We have it on this list because it is struggling for different reasons. The company is seeing the rebound in sales from China it had long hoped for, and the decline in birth rates in China has lessened somewhat. And with a mere 7% market share, there is scope for the company to take further market share.

But there are some new troubles facing the company including its ability to manufacture and ship products. It is bringing things in-house, a move that caused a dispute with its partner Synlait and meant a fair deal of capital expenditure. ‘Supply chain issues’ forced the company to push its revenue target by a year, now in 2027.

Seek (ASX:SEK)

Seek is not as immune from tough economic times as many investors thought it was. Economies are slowing and labour markets are softening, which means job ads are slowing down. The company hopes it can still make more money be squeezing more out of consumers, extracting better yields.

But investors are not buying that story, likely thinking would-be customers will seek cheaper alternatives. Just observe the fact that Seek is down 20% this year and shed nearly 10% on the day it released its results.

Ampol (ASX:ALD)

Ampol is down by 25% in less than 5 months. For much of 2022 and 2023, investors couldn’t possibly see what could go wrong. Record high oil prices, in response to Russia’s invasion of Ukraine and the sanctions that followed, meant high revenues for the company. And production at the company’s Lytton refinery was going smooth. Neither of these are the case now. Production was down 6% in the first half of CY24 and trading conditions were less favourably. Its post-tax profit was A$233.6m, down from A$329.6m 12 months earlier. And things may not get better in the immediate term with heavier capital demands on the business.

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