Australia's City Chic Collective slips on flagging EBITDA loss

City Chic Collective

20/01/2023 01:03

** Shares of fashion retailer City Chic Collective  CCX.AX 
fall as much as 7.7% to A$0.66 
    ** CCX expects an underlying EBITDA loss of A$2.5 mln to A$4
mln ($1.73 mln-$2.76 mln) for the first half, compared with an
Ord Minnett estimate of A$1 mln EBITDA loss
    ** Says it had to undertake promotional activity to drive
demand during the Black Friday, Cyber Monday, Christmas and
Boxing Day, which impacted gross margin
    ** H1 group sales revenue expected at A$168.6 mln, down 8%
    ** "Given that management has been incentivised to reduce
inventory further in 2H23, gross profit margin pressure is
unlikely to abate soon" - Ord Minnett analysts 
    ** CCX up 50.5% YTD, as of last close
($1 = 1.4472 Australian dollars)
 (Reporting by Harshita Swaminathan)
 ((Harshita.Swaminathan@thomsonreuters.com))