City Chic Collective (CCX) H1 2025 earnings summary

Executive summary

• Achieved an $8.7m turnaround in underlying EBITDA, moving from a $5.2m loss to a $3.5m profit in H1 FY25, driven by strategic actions, cost reductions, and margin improvements.

• Gross margin improved by up to 6.6 percentage points year-over-year, reaching as high as 59.6%.

• ANZ business led growth with comp store sales up 7.5% and strong Q2 momentum, while USA sales declined 22.5% amid volatility.

• Active customer base stable at 466,000, with high-value customers representing 53%.

• Net cash position of $12.0m at period end, with a $10.0m undrawn debt facility and strengthened balance sheet post capital raise and divestments.

Financial highlights

• Revenue for H1 FY25 was $69.5m, down 3.6% year-over-year; ANZ up 2.6–2.8%, Americas down 22.5%.

• Gross margin percent reached up to 59.6%, up as much as 6.6 percentage points year-over-year.

• Fulfillment costs reduced to 12.3–12.4% of sales; labor costs down up to 26.9%; CODB down to 54.4%.

• Underlying EBIT loss improved to $3.8m, a 71.8% year-over-year improvement.

• No interim dividend declared for 1H FY25.

Outlook and guidance

• FY25 revenue guidance revised to $137m–$147m and EBITDA (post AASB16) to $8m–$12m, reflecting USA volatility and higher Amazon marketing spend.

• ANZ expected to maintain positive trajectory, with five new stores signed for H2 FY25 and further expansion planned.

• Further $2.0m in annualized cost reductions targeted through H2 FY25 and into FY26.

• USA recovery remains a focus, with potential store trials and new partners.

• Global plus-size fashion market remains a long-term growth opportunity.