• Global sales revenue of $69.5m
• Underlying EBITDA of $3m to $4m, strong turnaround from EBITDA loss in 1H FY24
• Continued trading margin improvements in all regions, with 8.5% GM$ growth against PCP

City Chic Collective Limited (ASX: CCX) has provided a trading update for the 26 weeks to 29 December 2024 (1H FY25) based on preliminary and unaudited numbers. Group sales revenue for 1H FY25 is expected to be down approximately 3.6% to $69.5m compared to the prior corresponding period (PCP). However, the company has reported strong momentum in margin improvement, with trading GM$ up 8.5% vs PCP. The ANZ business continued its turnaround from 2H FY24, delivering a pleasing holiday trading period with stores and the online business performing above the Group's expectations. While the USA business faced challenges, City Chic branded products in the USA showed 25% growth in the half, giving the Group confidence to deliver the growth required in the second half. The Group's net cash position as at the end of 1H FY25 is expected to be $12.0m. CEO Phil Ryan stated that the company is very pleased with the turnaround in the Group's earnings, with the continued business moving from a loss of $4.4m in the first half last year to an expected EBITDA of between $3.0m to $4.0m in the current period. The company expects the momentum in ANZ to continue into H2, and realizing the full potential of the USA business is now the top priority.

Underlying EBITDA (post AASB 16) expected to be between $3.0m to $4.0m for 1H FY25, compared to an EBITDA loss of $4.4m in 1H FY24.

The company expects the momentum in the ANZ business to continue into H2 FY25, and realizing the full potential of the USA business is now the top priority for the company in the second half of FY25 and into FY26.