Australia's City Chic Collective falls after Citi cuts earnings estimates, PT

City Chic Collective

26/05/2023 06:44

(Updates with share moves)
    ** Shares of fashion retailer City Chic Collective Ltd
 CCX.AX  tumble as much as 6.3% to A$0.375
    ** Analysts at Citi cut CCX's PT by 20% to A$0.45
    ** CCX's recent trading update showed a deterioration in
sales momentum, a risk the brokerage flagged earlier this month 
    ** Brokerage cuts estimates for CCX's FY23 and FY24 net
profit after tax by A$12 mln ($8.14 mln) and A$14 mln,
respectively
    ** One of the factors that will impact CCX's potential
earnings recovery is how quickly product margins return towards
60% - brokerage
    ** "We are pleased to see CCX taking more rapid actions to
reduce inventory, which should help improve fulfilment cost
efficiency" - Citi
    ** Three of 12 analysts rate the stock "buy" or higher and
nine "hold"; median PT is A$0.48 – Refinitiv
    ** CCX stock down 15.8% YTD, as of last close 

($1 = 1.4743 Australian dollars)

 (Reporting by Echha Jain and Harish Sridharan in Bengaluru)
 ((Echha.jain@thomsonreuters.com))