Guess which ASX All Ords stock is diving 8% after sinking to a $24 million loss

The All Ordinaries is up a welcome 1% in late morning trade on Wednesday, but this ASX All Ords stock is struggling.

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Reporting season is proving tough for this ASX All Ords stock today.

While the All Ordinaries Index (ASX: XAO) is up a welcome 1% in late morning trade on Wednesday, this ASX All Ords stock is down a painful 7.7%.

Any guesses?

If you said City Chic Collective Ltd (ASX: CCX), go to the front of the virtual class.

Shares in the women's clothing retail stock closed yesterday trading for 52 cents. At the time of writing, the company's shares are changing hands for 48 cents apiece after earlier trading as low as 44 cents each. That represented a loss of more than 15%.

This comes following the release of City Chic's full financial year results for the 12 months ending 2 July (FY23).

Here's what ASX investors are considering.

City Chic share price tumbles on crumbling earnings

What else happened with the ASX All Ords stock over the year?

The City Chic share price is under heavy selling pressure on the back of a difficult trading year for the ASX All Ords retailer.

Revenue took a big fall, with the company reporting that demand was volatile across each of its markets. This required heavy promotional activity to drive sales.

Earnings were hit by lower consumer demand in all the company's operating regions along with management's focus on clearing inventory. Inventory was reduced to $53.8 million over the year.

Faced with negative profits, the board again opted not to declare a dividend. City Chic last paid dividends in 2019.

FY23 also saw the ASX All Ords share complete a strategic review of its online and international businesses "to determine the most efficient path to profitable growth".

City Chic is targeting a return to 60% gross margins and optimised investment to maintain commercial inventory levels.

What did management say?

Commenting on the results sending the ASX All Ords share into a tailspin today, CEO Phil Ryan said:

The team has worked extremely hard to get our inventory back in shape and restore our balance sheet.

As part of our review process, we had the opportunity to sell the Evans business and exit EMEA which now gives us a clear run at the highly lucrative USA market while we consolidate our leading position in Australia.

What's next for the ASX All Ords stock?

Looking to what could impact the City Chic share price in the months ahead, the company said that it is seeing "strong sell through" of its new seasonal product in both markets as it transitions to better end ranges.

The ASX All Ords share expects demand to continue improving into Q2 FY24.

City Chich will also continue its cost reduction program through H1 FY24, aiming to maintain positive net cash at year-end.

The retailer is forecast to be loss-making in 1H FY24, but it expects to be trading profitably in the second half of next year.

"We have seen a strong response to our new product and expect to be back to profitability during the second half of FY24," Ryan said.

City Chic share price snapshot

The past 12 months have seen the City Chic share price crash a painful 71%.

2023 has seen the ASX All Ords share perform better, up 2% since the opening bell on 3 January.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. 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 Scott Phillips.

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