Citi cuts PT on Australia's City Chic after weak HY sales view

City Chic Collective

27/02/2023 19:59

** Citi cuts PT on City Chic Collective  CCX.AX  to A$0.56
from A$0.72 as it sees weaker-than-expected sales trends for co
in second half of 2023
    ** Brokerage says PT cut due to co posting first-half 2023
net loss after tax of A$27.2 mln ($18.33 mln) vs profit of
A$12.3 mln in the first half of 2022
    ** Citi lowers co's FY23 NPAT forecast by A$21 mln on
inventory write-down
    ** Upgrades FY24 and FY25 NPAT forecast by A$3 mln and A$1
mln respectively on margin turnaround initiatives
    ** During second half of 2023, "We consider the sales trends
to be disappointing when taking into account elevated
discounting activity" - Citi 
    ** Based on a survey, says CCX would benefit from opening
stores in U.S.
    ** Stock up 8.4% this year, as of last close 
 
($1 = 1.4839 Australian dollars)

 (Reporting by Ayushman Ojha in Bengaluru)
 ((Ayushman.ojha@thomsonreuters.com;))