Retailer City Chic's 'sensible' plans to return to profits face inflation problem - Citi

City Chic Collective

30/08/2023 22:36

** Analysts at Citi hike price target for global
omni-channel retailer City Chic Collective Ltd  CCX.AX  to
A$0.55 from A$0.49, retain "neutral/high risk" rating
    ** The New South Wales-based retailer on Wednesday logged a
FY23 net loss after tax from cont ops of A$45.0 mln ($29.15
mln), vs profit of A$24.4 mln last year
    ** CCX forecast it will make a loss in 1H24, but will trade
profitably in 2H24
    ** Brokerage says level at which sales stabilise is the "key
uncertainty" which will determine whether or not CCX can make
profit
    ** Citi says potential easing up of consumer demand and
macro headwinds could pose threats to CCX's targets
    ** "City Chic appears to be making sensible decisions
regarding restructuring its operations... however, inflation and
weak macro environment adds another layer of challenges" - Citi
    ** Four of 10 analysts rate CCX "buy" or higher, and six
rate it at "hold"; median PT is A$0.55 – Refinitiv data

    ($1 = 1.5439 Australian dollars)
  

 (Reporting by Sameer Manekar in Bengaluru)
 ((Sameer.Manekar@thomsonreuters.com; Twitter: https://twitter.com/sameer_manekar))