No announcements about the drop, page-6

The market seems to be pricing in a negative trading update similar to ADH, BBN and DSK. These stocks fell around 20% after the update was released. What sets AX1 apart is that AX1 has already had a sharp sell off while the stocks that fell significantly on the trading update had been on a gentle downtrend prior to the update. One could argue that even if a negative update was issued, AX1 SP will not fall much further as it is already down considerably.
Another thing to consider is that up until the end of Feb, everything was going great. Management was very upbeat and said they had not seen a meaningful drop off in sales. Surely the sales for March to May can't have dropped off a cliff. The interest rate rises have been gradual so a drop off in sales would also be gradual. It's worth noting that ADH and BBN etc were already talking about challenging conditions affecting sales during H1 presentations in February while AX1 did not have the same issue.
I think the most likely scenario here is a mild impact on sales for AX1 leading to a slightly weaker H2 but I don't think we will see downgrades that the likes of ADH and BBN have seen. The only issue is that retailer margins are highly sensitive to revenue so a slight drop off in sales can have a magnified impact on the bottom line. Even so, I would argue an EPS run rate of 16c is doable even with weak economic conditions (keeping in mind that some of the loss in sales is made up by increases in net store numbers). That puts AX1 at a PE of 10 in slightly weak economic conditions. I think that's good value for a company that can grow organically in the high single digits.