Shares of Australian fashion retailer City Chic Collective (ASX:CCX) rose an impressive 26% to A$0.605.

If these gains hold, this would be their strongest performance since March 2020, and this rise also brings the share price to its highest level since February 21.

The company announced that it had divested its Evans business and EMEA inventory after market hours on Thursday.

AK Retail Holdings has been penned as the recipient of these assets, with a total cash consideration of 8 million pounds ($10.18 million) set for the deal.

Citi has raised its target price on City Chic Collective (ASX:CCX) from A$0.45 to A$0.49, while retaining its ‘neutral’ rating on the company.

On the matter, it contended that the exit from EMEA was ‘necessary’ given Evans' underwhelming output.

Morgan Stanley expressed that the divestment was strategically sound and fiscally viable, and anticipated a positive response from the stock market.

Signs of this can already be seen as the stock is on its way to achieving its third consecutive weekly gain.

As of its last close, the stock is already up 1.1% this year.

City Chic Collective (ASX:CCX) is an Australian-based fashion retailer, known for its stylish women’s clothing and accessories.