Half Year 2026 City Chic Collective Ltd Earnings Call Transcript
Key Points
- City Chic Collective Ltd (CCCHF) reported an 86% improvement in EBITDA for the first half, increasing from $3.5 million to $6.5 million.
- The company achieved a 10.1% increase in trading gross margin dollars in Australia and New Zealand, driven by a high average sell price.
- Positive operating cash flow of $10.1 million was delivered in the first half, reflecting disciplined working capital management.
- The trading gross margin improved by 220 basis points to 62.2%, exceeding the target of 62%.
- City Chic Collective Ltd (CCCHF) has extended its debt facility until March 2028, providing stability and flexibility for future operations.
- Revenue was flat at $69.2 million compared to the prior corresponding period, with the USA experiencing a 31% decline in revenue.
- The deliberate reduction in purchasing in the USA due to tariff-related volatility impacted revenue, particularly in the partner channel.
- The company faced slower-than-planned intake of summer products in Australia and New Zealand, impacting first-half revenue.
- Economic pressures and softer consumer sentiment continue to impact demand, particularly in Australia and New Zealand.
- The shift in the Amazon operating model is expected to cause short-term revenue challenges in the USA.
Thank you for standing by, and welcome to the City Chic Collective Limited HY2026 results. (Operator Instructions)
I would now like to hand the conference over to Mr. Phil Ryan, Managing Director and CEO. Please go ahead.
Thank you, and good morning, everyone, and thanks for joining us. I'm Phil Ryan, the CEO and Managing Director of City Chic Collective, and I'm joined today by James Plummer, our CFO. This morning, I'll run through the presentation, starting with the business and strategic update. I'll then ask James to do a review of the half's financials, and I will then discuss the trading update before opening up to questions.
Moving to slide 2. Our EBITDA delivered an 86% improvement in the first half, increasing from a profit of $3.5 million to $6.5 million. This performance was underpinned by our strategic actions across customer and product, along with the disciplined execution of our cost-out program.
The ongoing growth
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