Half Year Results Investor Presentation
| Stock | City Chic Collective Ltd (CCX.ASX) |
|---|---|
| Release Time | 27 Feb 2025, 8:53 a.m. |
| Price Sensitive | Yes |
City Chic Collective Reports Half Year Results
- Improved operating metrics and material profitability
- Strengthened balance sheet with $12m cash balance
- Positive momentum in 2H FY25 trading
- Further $2m annualised cost savings targeted
City Chic Collective has reported a strong turnaround in its half-year results, with improved operating metrics, material profitability improvements, and a strengthened balance sheet. Key highlights include a 4.7 percentage point increase in gross margin, a 25% increase in average selling price, and an $8.7m EBITDA turnaround. The company has also seen a 24.4% reduction in labour costs and a decrease in fulfilment costs to 12.3% of sales. The company's high-value customer base now makes up 53% of customers, and global traffic is up 15% in the first half. The company's cash balance stands at $12m, and it has a $10m multi-currency debt facility that remains undrawn. The company is targeting a further $2m in annualised cost savings in the second half of FY25 and into FY26. The outlook for the ANZ business is positive, with the company expecting continued trajectory as strategic initiatives pay off. However, the USA business remains volatile, with a slower-than-anticipated economic recovery. The company is focused on the USA recovery and future growth, with potential physical store trials and new partners. The company has revised its FY25 financial targets, with revenue expected to be between $137m and $147m and EBITDA Post AASB16 between $8m and $12m.
Revenue of $137m to $147m EBITDA Post AASB16 of $8m to $12m for the 2025 financial year.
The company expects the ANZ business to continue on its current trajectory as strategic initiatives pay off, with higher average selling price and gross margin. The company is focused on the USA recovery and future growth, with potential physical store trials and new partners. Further $2m annualised cost savings are targeted in 2H FY25 and into FY26 to align the cost base with revenue. The global plus-size fashion market opportunity remains strong, with continued industry growth expected, and the USA plus-size market remains attractive and open for an elevated brand to take greater market share.