Plus-size fashion group City Chic has had a softer than expected start to the year, according to analysis of website traffic in Australia, the US and EMEA by investment bank Citi.
Online sales accounted for 80% of City Chic’s total revenue in the six months to December.
The Citi analysts have downgraded sales forecasts for City Chic.
“We expect sales to improve over the latter half of 2H22 as City Chic is likely to be in a relatively strong position with inventory relative to competitors.”
In Australia, City Chic’s monthly website visits improved to +6% growth in March compared to a fall in February.
“This is in line with our industry feedback,” say the Citi analysts. “City Chic also continues to outperform its competitors, who experienced, on average, flat growth in March.”
In a trading update covering 17 weeks to April 24, City Chic reported 46% growth in global sales to $178 million wth US sales rising 46% and Australian sales by 13%.
Underlying EBITDA was recorded at $23.5 million while underlying NPAT is valued at $14 million.