City Chic Collective (CCX) investor relations material

Executive summary

• Underlying EBITDA increased 86% year-over-year to $6.5 million, driven by disciplined execution, cost control, and strategic focus on high-value customers and product quality.

• Revenue was AUD 69.2 million, nearly flat year-over-year, with ANZ up 7.4% and USA down 31% due to deliberate inventory reductions.

• Positive operating cash flow of AUD 10.1 million was achieved, with net cash position at $5.4 million and a $10 million undrawn debt facility extended to March 2028.

• The business model was simplified, focusing on high-value customers, product improvements, and AI-driven initiatives.

• No dividends were paid, recommended, or declared during the period.

Financial highlights

• Trading gross margin increased 220 basis points to 62.2%, exceeding the 62% target.

• Cost of doing business reduced to 51%, down from 54% year-over-year.

• Net loss after tax from continuing operations reduced by 48% to $3.5 million.

• Inventory reduced by 21% year-over-year, supporting reinvestment in key markets.

• Net operating cash flow was $10.1 million, a significant improvement from negative $8.9 million prior period.

Outlook and guidance

• ANZ trading revenue up 9% and trading gross margin dollars up 17% in the first eight weeks of Q3.

• USA preparing for Q4 sales relaunch with new inventory and marketplace expansion.

• Net operating cash flow is forecasted to remain positive, with the $10 million debt facility fully available and extended to March 2028.

• Continued focus on cost, inventory, and execution amid economic pressures and rising interest rates.