Full Year 2025 City Chic Collective Ltd Earnings Call Transcript
Key Points
- City Chic Collective Ltd (ASX:CCX) achieved a $15 million EBITDA turnaround in FY25, moving from a loss of $8.5 million to a profit of $6.5 million.
- Sales in Australia and New Zealand increased by 15.2% in the second half and 8.3% for the full year, indicating strong regional performance.
- Online revenue grew by 17.8%, and website traffic in Australia and New Zealand increased by 26%, reflecting successful digital strategies.
- The USA business is profitable, with a 25% increase in sales of PCP products, demonstrating effective cost management and market potential.
- The company achieved a cost reduction target of $22.3 million and identified an additional $1 million in cost savings for FY26, showcasing effective cost management.
- Despite improvements, City Chic Collective Ltd (ASX:CCX) acknowledges that there is still work to be done in product assortment and customer engagement.
- The USA market faces political and economic uncertainty, leading to a planned reduction in inventory investment and anticipated revenue decline in FY26.
- Retail prices have increased by 20% to 30% across the market, which may impact consumer purchasing behavior.
- The company plans to close underperforming stores as leases expire, indicating challenges in certain retail locations.
- There is a 5% to 8% anticipated cost increase due to current tariffs, which could affect profitability.
Thank you for standing by, and welcome to the City Chic Collective Limited FY 2025 results call. (Operator Instructions)
I would now like to hand the conference over to Mr. Phil Ryan, Managing Director and CEO. Please go ahead.
Thank you very much, and good morning everyone and thanks for joining us. I'm Phil Ryan, CEO of City Chic Collective, and I'm joined today by James Plummer, our CFO. This morning, I'm going to run through the presentation that we lodged with the ASX this morning, starting with key highlights.
I'll throw to James for a review of the year's financials, and then I'll discuss the outlook before opening up to questions.
Moving on to slide 2, our $15 million EBITDA turnaround in FY25, going from a loss of $8.5 million to a profit of $6.5 million is very pleasing and was driven by our strategic execution around customer and products and the discipline reduction in our cost base.
This year was a big step
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