Maison Solutions Inc. (MSS)

Maison Solutions Inc. (MSS) stock dropped by 6.69% due to the release of the company's fiscal 2024 second-quarter financial results, which disappointed investors.

• Total revenues: In the second quarter of fiscal 2024, MSS reported total revenues of $13.8 million, down from $14.2 million in the prior-year quarter. The decrease was mainly due to increased competition from new Asian supermarkets near one of MSS's stores and a reduction in online purchases as customers returned to pre-pandemic shopping habits. Revenues from perishable goods, including meat, seafood, vegetables, and fruit, also dropped slightly to $7.5 million compared to $7.9 million the previous year. Revenues from non-perishable goods remained similar at $6.3 million.
• Opearing income: The compnay reported operating income dropped to $254,000, primarily due to higher selling expenses such as increased payroll and utility costs.
• Net income: The figure for the second quarter of fiscal 2024 was $91,000, or $0.01 per diluted share, compared to $529,000, or $0.03 per diluted share, for the prior-year period. These financial results likely contributed to the stock price decline.

Maison Solutions Inc. (MSS) stock dropped by 83.56% due to a new short call from Hindenburg Research, a well-known short-selling firm. The firm alleged that the company was involved in fraud. Maison Solutions have not responded to the allegations so far, leading to fears amongst traders that the firm might be guilty of the accusations. As a result, Hindenburg Research publicly disclosed their short position in the Asian grocer Maison Solutions, which likely contributed to the significant drop in MSS's stock price.

Maison Solutions Inc. (MSS) dropped by 18.31% due to the company's recent initial public offering (IPO), where it offered 2,500,000 shares of Class A common stock to the public at $4.00 per share, raising $10 million in gross proceeds. The stock began trading on the Nasdaq Capital Market under the symbol "MSS" on October 5, 2023. Investor reaction to the IPO and share pricing likely contributed to the stock's drop.