The City Chic (ASX:CCX) share price tumbled 8% today. What’s happening?

sad woman sitting with shopping bags

It’s been another tough day for the City Chic Collective Ltd (ASX: CCX) share price, continuing a shocking run for the fashion retailer.

The company’s shares closed down 8.4% at $4.47 apiece. That’s five consecutive days of falls for the retailer’s share price.

Let’s take a closer look at what is going on with City Chic.

What’s impacting City Chic?

The City Chic share price slumped today despite no news from the company. One explanation for this drop could be a fall in consumer confidence in the retail sector due to COVID-19 Omicron fears.

Consumer confidence was down 2.2% compared to 18-19 December, a survey from ANZ-Roy Morgan released today revealed. Analysts attributed this result to the “rapid rise of Omicron cases across Australia”.

For perspective, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) finished the trading day down 0.9%, while the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) closed down 2.13%.

The City Chic share price has dropped 18.55% since the start of January.

That said, my Foolish colleague James recently reported broker Bell Potter gave the company’s shares a $7.40 price target.

The last price-sensitive news from the company was on November 17. City Chic shares soared nearly 6% on the back of a well-received annual general meeting update. Sales revenue grew 32.9%, while comparable sales growth was 31.6%.

The company’s global customer base also grew 61% from the previous year to more than 1 million.

City Chic share price snapshot

The City Chic share price has returned around 19% in the past year. That’s 9% more than the benchmark S&P/ASX 200 Index (ASX: XJO).

In the past month, its shares have lost 21%, while they are down nearly 19% in the past week.

The company commands a market capitalisation of roughly $1 billion based on the current share price.

The post The City Chic (ASX:CCX) share price tumbled 8% today. What’s happening? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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