Guess which ASX All Ords stock has rocketed 29% in just 3 days

The ASX All Ords stock has enjoyed a big turnaround this week.

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The All Ordinaries Index (ASX: XAO) is down 0.3% in three days, but this ASX All Ords stock has been charging in the other direction.

In fact, with a 4.4% intraday gain today, it's up a whopping 28.6% since Monday's close.

Any guesses?

If you said City Chic Collective Ltd (ASX: CCX), give yourself a virtual prize.

Shares in the embattled women's clothing retail stock closed Monday trading for 28 cents apiece. At the time of writing, shares are swapping hands for 36 cents apiece.

Here's what's piquing investor interest in the ASX All Ords stock.

What's boosting the ASX All Ords stock?

On the tail end of what can fairly be described as a horror year – hit by inflation, rising interest rates and excess inventories – the City Chic share price is rebounding amid investor optimism about the year ahead.

At the company's annual general meeting (AGM) yesterday, management said that after inventory right-sizing was completed in Q1 FY 2024, inventory was now at levels that reflected demand.

"With the right-sizing of inventory, we now have considerably more 'newness' in stores and online. These products are selling through well and at good margins," City Chic chairman Michael Kay said at the AGM.

The ASX All Ords stock has also been running a razor over its costs, with expectations to return to profitability in H2 FY24. In FY 2023, City Chic reported a net loss after tax from continuing operations of $45 million.

And, likely spurring ASX investor interest this week, the company's costs savings are running ahead of expectations:

According to Kay:

Cost savings are in excess of what we announced in August. Headcount savings are running $3 million better than the $6 million plan.

Annualised logistics costs have been reduced by $7 million through warehouse consolidation, and additional annualised savings have been renegotiated with suppliers to assist us achieve our target of fulfillment costs of 19% of revenue. We have also achieved operating cost savings of $2 million.

Kay said this had put the ASX All Ords stock "firmly back on the path to profitability".

The company ended FY 2023 with net cash of $11 million.

A sharp year-on-year improvement in average order value also looks to be boosting the City Chic share price.

"Our key metric of average order value has shown strong improvements in October and November and is about 10% above last year," CEO Phill Ryan said.

Cit Chic share price snapshot

As mentioned up top, the past 12 months have been a real horror year for the ASX All Ords stock as cash-strapped customers scaled back purchases at the same time the company was trying to downsize excess inventories.

Despite the big three-day rebound, the City Chic share price remains down 73% since this time last year.

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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