Citi cuts earnings estimate, PT for Australia's City Chic Collective

City Chic Collective

25/05/2023 20:26

** Analysts at Citi cut profit estimate and price target for
Australian multi-channel retailer City Chic Collective Ltd
 CCX.AX  
    ** CCX's recent trading update showed a deterioration in
sales momentum, a risk the brokerage flagged earlier this month 
    ** Brokerage cuts FY23 and FY24 net profit after tax
estimate by A$12 mln ($8.14 mln) and A$14 mln, respectively
    ** Also cuts PT to 45 AU cents on lower earnings
    ** 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, 9
"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 in Bengaluru)
 ((Echha.jain@thomsonreuters.com))