Citi sees potential headwinds to Australia's Citi Chic H1 sales

Torrid Holdings

04/08/2022 04:42

** Citi sees potential headwinds to Australia's City Chic
Collective  CCX.AX  first-half 2023 sales after its U.S.
competitor Torrid Holdings  CURV.N  flagged a downgrade in its
sales and earnings before interest, tax, depreciation and
amortisation for 2Q22 
    ** Brokerage says while Torrid's website traffic has been
consistent, CCX's avenue monthly traffic growth has
underperformed over Jan-June 2022
    ** It says although CCX does not have physical stores in the
United States, there is a downside risk to co's H1 FY23 sales
forecast, as Torrid may indicate consumers have started to cut
spending due to increased costs of living
    ** Broker says CCX's margins may get adversely impacted as
Torrid has been clearing inventories
    ** Brokerage retains "buy" rating on the stock, sets price
target of A$3 
    ** Eight of 10 analysts rate the stock "buy" or higher, xx
"hold" and none "sell" or lower; their median PT is A$3.00 –
Refinitiv data
    ** Stock down 59.8% this year, as of last close

 (Reporting by Archishma Iyer)
 ((Archishma.Iyer@thomsonreuters.com;))