The "Miss" is actually just you missing the Attack. Every weapon has an accuracy statistic that you can see next to the damage range (It's right above "Speed"). The "Blunt Axe" has an accuracy of 80%, so there's a higher chance for you to miss with that one.
I've also checked the damage and your output is more or less the expected result for this weapon. The "Blunt Axe" just doesn't output enough damage against a Possessed Armour.
Check my other comment for some suggestions on what you could do. You should also check the User Manual for crafting recipes.