City Chic Collective (CCX) H1 2025 earnings summary

Executive summary

• Achieved an AUD 8.7 million turnaround in EBITDA, moving from a loss of AUD 5.2 million to a profit of AUD 3.4 million in the first half, driven by strategic actions and cost-out programs.

• Gross margin improved by up to 6.6 percentage points year-over-year, with average selling price up 25%.

• ANZ business returned to growth, with sales up 2.6% and comp store sales up 7.5%, while U.S.A. business declined 22.5% due to slower economic recovery.

• Active customer base reached 466,000, up 3.1% from FY24, with 53% high-value customers.

• The company divested its Avenue business in the US and exited the EMEA region, focusing on core operations in ANZ and the USA.

Financial highlights

• Revenue for the half was AUD 69.5 million, down 3.6% year-over-year; Australia up 2.6%, Americas down 22.5%.

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

• Fulfillment costs fell to 12.3% of sales, labor costs down nearly 25%, and cost of doing business at 54.4%.

• Net cash position of AUD 12 million at December end, with a $10 million debt facility undrawn.

• Net assets increased to $38.2 million from $35.1 million at 30 June 2024.

Outlook and guidance

• FY25 revenue guidance revised to AUD 137–147 million and EBITDA to AUD 8–12 million due to U.S. volatility and increased Amazon marketing spend.

• ANZ expected to continue positive trajectory, targeting 62% gross margin in FY 2026, with five new stores signed for H2 FY25.

• U.S.A. sales remain volatile; focus on rebuilding customer base and potential store trials.

• Further AUD 2 million annualized cost reduction targeted in 2H FY25 and into FY26.

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