• Sales Revenue of $69.5m, down 3.6% on 1H FY24
• Comparable store sales growth of 7.5%
• Underlying EBITDA of $3.5m, a strong turnaround from EBITDA loss in 1H FY24
• Trading Revenue in first 8 weeks of 2H FY25 up 25% on PCP

City Chic Collective Limited (ASX: CCX) ('City Chic', or the 'Group') today announced its financial results for the six months ended 29 December 2024 ('1H FY25'). The Group reported Sales Revenue of $69.5m, down 3.6% on the prior corresponding period (PCP). The ANZ business saw revenue growth of 2.8% to $55.3m, with comparable store sales up 7.5%. However, the Americas region saw a 22.5% decline in revenue to $14.2m, with City Chic branded product growing 25%. The Group reported an Underlying EBITDA of $3.5m, a strong turnaround from the EBITDA loss of $5.2m in the PCP. This was driven by better trading margins, lower fulfillment costs, and materially improved cost of doing business, which declined to 54.4% of sales. The Group finished the period with net cash of $12.0m and an undrawn multi-currency debt facility of $10.0m. In the first 8 weeks of the second half, Trading Revenue was up 25% on the PCP, with the ANZ business up 30% and the USA up 9%. However, the USA trading margin was materially impacted by higher-than-expected clearance activity. As a result, the Group has revised its FY25 financial targets to revenue of $137m-$147m and EBITDA (post AASB 16) of $8m-$12m.

Targeting revenue of $137m-$147m and EBITDA (post AASB 16) of $8m-$12m in FY25.

The ANZ business is expected to continue on its current trajectory as strategic initiatives pay off, with higher Average Selling Price and Gross Margin. However, the USA sales remain volatile, with a slower than anticipated economic recovery and the need to rebuild the customer base with reduced promotions. The CEO is focused on the USA recovery and future growth, with potential physical store trials and new partners, which will take time to deliver.