City Chic Collective (CCX) H2 2024 earnings summary

Executive summary

• Achieved FY24 EBITDA approximately 10% ahead of pro forma forecast, driven by margin improvements and business transformation, including brand refresh, inventory normalization, and Avenue divestment.

• FY24 global sales were $131.6m, down 28.3% year-over-year, with 481k active customers and inventory reduced by 42.8% to $30.7m.

• Completed significant cost reductions, support office headcount cut by 50%, and cost base right-sizing.

• Set FY25 targets of AUD 142–160 million in revenue and AUD 11–18 million in EBITDA, with confidence in achieving these on lower unit volumes.

• Statutory NPAT from continuing operations was a loss of $38.4m, and total statutory NPAT loss attributable to shareholders was $93.0m including discontinued operations.

Financial highlights

• Underlying FY24 EBITDA loss was $8.4m, 10% better than forecast, and underlying EBIT loss was $24.3m, a 23.3% improvement year-over-year.

• Gross margin improved to 57.3% in FY24, up from 46.3% in FY23, with H2 at 61.2%.

• Revenue declined 28% year-over-year, with store performance in Australia as a bright spot; comp stores down 5% in Q4 but up 10% in the first eight weeks of FY25.

• Net cash position of $3.9m at year-end, with additional $15m from Avenue sale and $3.1m from equity raise received post year-end.

• Online penetration was 56% of revenue in FY24.

Outlook and guidance

• FY25 targets: revenue of AUD 142–160 million and EBITDA of AUD 11–18 million, with higher ASP and gross margin trends expected to continue.

• Cost reduction programs to deliver incremental $11.5m in FY25.

• Store portfolio expected to remain stable in FY25, with no major expansion or contraction planned.

• Mid- to long-term goal to grow store portfolio to around 120 locations in 3–5 years.

• Long-term opportunity in the global plus-size fashion market, with focus on increasing customer annual spend.