Citi sees scope for upside in Australia's City Chic Collective

City Chic Collective

14/01/2025 19:56

** Citi sees scope for upside in City Chic Collective
 CCX.AX  on the back of optimism in company's cost saving
measures, but says it will be difficult for the Aussie retailer
to meet its FY25 forecast
    ** Brokerage reduces stock PT to A$0.2 from A$0.25, but
maintains "buy/high risk" rating
    ** Apparel and accessories retailer on Tuesday said its
global sales revenue rose 3.2% in 26 weeks ended Dec. 29,
compared to the same period a year ago
    ** Company, however, says it expects group sales revenue to
be down ~3.6% in 1H25, compared to 1H24
    ** Citi says company needs to grow revenue by 20% in 2H25 to
manage the low end of its FY25 revenue forecast of A$142 mln to
A$160 mln ($87.84 mln to $98.98 mln)
    ** However, brokerage sees potential for some recovery due
to better momentum in company's web traffic recently; forecasts
9% revenue growth in 2H25
    ** Citi also expects company's U.S. earnings to benefit from
stronger U.S. dollar tailwinds
    ** City Chic has fallen 12.2% so far this year


($1 = 1.6166 Australian dollars)

 (Reporting by Nikita Maria Jino in Bengaluru)
 ((Nikita.Jino@thomsonreuters.com;))