Citi trims City Chic Collective's PT as poor website visits weigh earnings

City Chic Collective

10/07/2022 22:33

** Analysts at Citi trim Australia's City Chic Collective's
 CCX.AX  target price as weaker-than-expected website visits in 
fourth quarter drove the brokerage to slash the apparel and
accessories retailer's earnings forecast for FY22, FY23 and FY24
    ** Citi slashes CCX's core earnings per share forecasts for
FY22, FY23, and FY24 by 4.7%, 12.7% and 13.1% respectively 
    ** Says Citi's analysis shows CCX group website visits
declined by 9% on an average over June, with all websites down
except City Chic Australia
    ** However, highlighting that co's Australia website visits
were positive in June, Citi said "CCX outperformed its
competitors who experienced, on average, a decline of -1% in
June 2022."
    ** Brokerage flagged that CCX might have an elevated
inventory position for longer than anticipated and stayed 'buy'
rated for the stock
    ** Eight of 10 analysts rate the stock "buy" or higher, and
two "hold"; median PT is A$3.23– Refinitiv data 
    ** Stock down 60.7% this year, as of last close


 (Reporting by Roushni Nair in Bengaluru; Editing by Howard
Goller)
 ((Roushni.Nair@thomsonreuters.com;))