- City Chic Collective (ASX:CCX) releases a trading update for H1 FY24
- Despite reporting a decline in group sales revenue, shares have surged 20 per cent today, possibly fuelled by speculations of a sale of City Chic’s North American business
- City Chic shares were worth $6.50 back in 2021
- CCX last traded at 52.5 cents
City Chic Collective (ASX:CCX) shares have surged more than 20 per cent after confirming its involvement in discussions for the potential sale of the company’s North American business.
The female fashion retailer also released a trading update for the first half of the financial year today, reporting global sales revenue to be down 29 per cent to $105.8 million with an EBITDA loss of between $7 and $10 million.
Despite the decline in H1 FY24 group sales revenue, City Chic managed to improve its margin by 10 percentage points in Q2 over Q1.
“The second quarter performance demonstrates the positive momentum we are seeing as a result of the strategic actions we’ve taken,” City Chic CEO and Managing Director Phil Ryan said.
“In the first quarter our focus was on clearing our inventory position and delivering new, relevant product to support our key trading period and we did that successfully.
“This is reflected in stronger sell-through at improved margins in the second quarter, especially in our stores business, and we remain on track to return to profitable trading overall in the second half.”
City Chic shares were worth $6.50 back in 2021, and now, the value has decreased to 53 cents a share, despite a strong surge from the discretionary stock today.