Citi sees decline in retailer City Chic Collective's H1 2024 sales

City Chic Collective

11/09/2023 04:02

** Analysts at Citi continue to forecast a 16% decline in
global omni-channel retailer City Chic Collective's  CCX.AX  H1
fiscal 2024 group sales
    ** Says visits to CCX's U.S. and ANZ websites in aggregate
fell 13% in Aug, after gaining 15% in July 
    ** Brokerage says CCX appears to be making sensible
decisions regarding restructuring its ops to create sustainable
business going forward, but inflation and weak macro environment
adds challenges to executing a turnaround
    ** The key uncertainty, in our view, is at what level sales
will stabilise, which will largely determine whether or not the
business can generate a profit - brokerage
    ** Sees brand damage from extended promotional activities as
another key risk 
    ** Brokerage maintains PT of A$0.55 and "neutral/high risk"
rating 
    ** CCX stock down as much as 3.57% to its lowest level since
Sept 1 
    ** Three of 10 analysts rate the stock "buy" or higher, six
"hold" and one "sell"; their median PT is A$0.53 – LSEG data
    ** CCX stock down 11.6% YTD, as of last close 

    

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