** Citi sees scope for upside in City Chic Collective CCX.AX on the back of optimism in company's cost saving measures, but says it will be difficult for the Aussie retailer to meet its FY25 forecast

** Brokerage reduces stock PT to A$0.2 from A$0.25, but maintains "buy/high risk" rating

** Apparel and accessories retailer on Tuesday said its global sales revenue rose 3.2% in 26 weeks ended Dec. 29, compared to the same period a year ago

** Company, however, says it expects group sales revenue to be down ~3.6% in 1H25, compared to 1H24

** Citi says company needs to grow revenue by 20% in 2H25 to manage the low end of its FY25 revenue forecast of A$142 mln to A$160 mln ($87.84 mln to $98.98 mln)

** However, brokerage sees potential for some recovery due to better momentum in company's web traffic recently; forecasts 9% revenue growth in 2H25

** Citi also expects company's U.S. earnings to benefit from stronger U.S. dollar tailwinds

** City Chic has fallen 12.2% so far this year

($1 = 1.6166 Australian dollars)

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))