Already a subscriber?City Chic is on track to report a 30 per cent fall in sales this year, dragging the women’s specialty fashion retailer’s bottom line deep into the red, internal documents show.
“Trading conditions have remained challenging”, and sales for this financial year including at Avenue will be down 30 per cent, the document reads. But the company has outlined to investors this year that adjusted earnings from continuing operations will likely come in at a loss of $9.3 million, even after including $8.8 million of cost savings. Another $11.5 million in savings are expected next year following the sale of Avenue. Its reported bottom line for this financial year is estimated to be deep in the red at $91.5 million. The pro forma adjusted loss will be more than $30 million.
Investors have watched City Chic’s share price drop from a high of $6.70 in October 2021 to 30¢, where it last closed. That has pushed its market capitalisation from around $1.6 billion to less than $70 million last week, when shares went into a trading halt.