Citi says Europe's falling household cash to hurt City Chic EMEA sales in FY23/24

City Chic Collective

16/09/2022 01:59

** Citi suggests downside risk to Australian apparel
retailer City Chic Collective Ltd's  CCX.AX  Visible Alpha
Consensus FY23 and FY24 EMEA sales growth of 20% and 18%
    ** Says decline in UK household cashflow may hurt consensus
view for CCX's EMEA sales growth of 20% and 18% in FY23 and
FY24, respectively
    ** Decrease in demand across any region could make CCX's
FY23 inventory guidance of A$125 mln ($83.60 mln) to A$135 mln
more challenging without increased promotions
    ** Says jewellery retailer Lovisa Holdings Ltd  LOV.AX 
better placed to weather macro pressures as younger target
audience is less sensitive to increased mortgage payments and
energy bills
    ** Further says rapid international rollout is also likely
to support LOV's sales growth in medium-term 
    ** Six of 11 analysts rate CCX "buy" or higher, five "hold"
and none "sell" or lower; their median PT is A$2.60 – Refinitiv
data
    ** CCX up 2.1% at A$1.71 as of 0045 GMT; down 69.6% this
year as of last close 

    


($1 = 1.4952 Australian dollars)

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