Half Year 2025 City Chic Collective Ltd Earnings Call Transcript
Key Points
- City Chic Collective Ltd (ASX:CCX) achieved an $8.7 million turnaround in EBITDA, moving from a loss to a profit.
- The ANZ business returned to growth, with sales up 2.6% and a strong second quarter performance.
- The company's online recovery in Australia and New Zealand showed significant growth, with sales up 70%.
- City Chic's product in the US showed 25% growth, indicating a strong market opportunity.
- The company has stabilized its balance sheet with $12 million in cash and an undrawn $10 million bank facility.
- The USA business experienced a 22.5% decline due to a slower-than-anticipated economic recovery.
- The company had to revise its revenue guidance due to volatility in US sales and higher-than-expected clearance activity.
- Amazon partnership requires more marketing spend than anticipated to achieve forecasted sales.
- The cost of doing business remains above target at 54.4%, though improvements are being made.
- Winter product performance in the USA was below expectations, impacting margins and profitability.
Thank you, and good morning, everyone, and thanks for joining us. I'm Phil Ryan, the CEO of City Chic Collective, and I'm joined today by our CFO, James Plummer. This morning, I will run through the presentation, starting with the business and strategic update. I'll throw to James for a review of the half's financials, and then we'll discuss the outlook before opening up to questions.
Moving to slide 2. Our EBITDA delivered an $8.7 million turnaround in the first half, going from a loss of $5.2 million to a profit of $3.4 million (sic - see slide 2, "$3.5 million"). This came from the strategic actions around customer and product and the execution of our cost-out program. Our trading gross margin dollars were up 8.5%, driven by our higher average selling price, which was 25% up. The performance of the summer assortment in Australia showed the impact of the strategy and given this is a large part of the USA summer range in the second half, we are expecting improvements in this market.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
