City Chic and Domain shares got dumped this morning as investors hate bad Christmas surprises

Nick Sundich Nick Sundich, December 20, 2022

It is only 5 days until Christmas, but City Chic shares (along with a handful of other companies) have plunged this morning. The catalyst for City Chic shares is yet another negative trading update. 

 

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Another bad trading update from City Chic

A handful of ASX stocks have issued negative trading updates this morning and City Chic Collective (ASX: CCX) was one of them. This company has repeatedly expressed hope that trading conditions would improve, but it was once again forced to tell shareholders things were not going as well as hoped. 

Just a month after its AGM meeting, the company told its shareholders conditions during the Black Friday sales had been volatile. Although YTD revenue was up 38% from the same period FY21, it was down 7% from the same period in FY22, to $1.57m. City Chic shares are now down by more than 90% in the last year. 

 

City Chic shares (ASX:CCX) over the last year (Graph: TradingView)

 

Domain is feeling the pinch of the property crunch

City Chic shares were not the only shares to fall on the ASX, another company was Domain (ASX:DHG). Domain told its shareholders that there had been a substantial decline in listings. Like City Chic, Domain only held its AGM a few weeks ago.

Domain told shareholders month-to-date listings were down 51% in Sydney and 37% in Melbourne. As a result it expected $48m in 1HY23 EBITDA, down from $61m a year ago, representing a decline of more than 20%. 

 

Touch Ventures and BWX cut valuations

Trading updates were not the only bad news on the ASX this morning. BWX (ASX:BWX) finally re-entered trading after lodging its annual report several months late. The company posted a $337m annual loss, including revaluation of its brands.

As the company re-entered trading, the chairman and two directors quit and the share price nearly halved as investors rushed to get out. 

Rounding out this morning’s bad news was venture capital firm Touch Ventures (ASX:TVL). The company slashed its NTA by US$34.6m to US$125.6m, reflecting the carrying values of its investments due to market conditions.

Half of this was a US$17.3m hit to the valuation of online retailer Sendle, accounting for more than half of Touch’s stake. The company also implied worse was to come, telling shareholders it would assess the value of investments at the end of each reporting period. The shares are down 9% this morning, to just 10 cents, having started the year around 27 cents.

 

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