Domino's Pizza shares plummeted after the company abandoned earnings guidance, citing disappointing sales in key international markets that failed to offset improvements in Australia.
Domino's reported an 8.9% decline in same-store sales in Asia for the first half of FY24, leading to below-expectation earnings.
The company expects its first half preliminary net profit before tax to range between $87 million and $90 million, lower than the preceding year but higher than the previous half-year.
Despite robust sales in Australia, New Zealand, and Germany and positive European performance, negative same-store sales growth in Japan, Taiwan, Malaysia, and France weighed on the overall business.
While Australia and NZ experienced 8.2% higher same-store sales and 8.1% network sales growth, the anticipated sales turnaround in Japan during the Christmas period did not materialise, impacting Asia's first-half earnings.