City Chic Collective Limited · ASX:CCX
City Chic Collective — H1 FY2022 Earnings Presentation
32 slides from City Chic Collective's earnings presentation, Feb 24, 2022
Slide 1: Leading a World of Curves: Interim FY22 Results
LEADING A WO R L D O F C U R V E S INTERIM FY22 RESULTS 24 February 2022
Slide 2: Contents
CONTENTS 1. 1H FY22 Result Overview 2. Business Overview and Strategy 3. 1H FY22 Financial Review 4. Outlook Phil Ryan, CEO Peter McClelland, CFO
Slide 3: 1H FY22 Result Overview
1. 1H FY22 RESULT OVERVIEW city chic collective
Slide 4: 1H FY22 Result Highlights
1H FY22 RESULT HIGHLIGHTS $178m Global Sales Australia, New Zealand, USA, Canada, UK, Europe, Middle East 77% 49.8% 44.0% Online Sales Top-line Sales Comp Sales Penetration (LTM)2 Growth Growth1 $178.3m 1.32m 71.7m Global Sales6 Active Customers3,6 Global Traffic5,6 64% YoY Growth 71% YoY Growth ANZ
Slide 5: 1H FY22 EBITDA Movements
1H FY22 EBITDA MOVEMENTS EBITDA excl. EMEA= 14.9% EBITDA incl. EMEA= 13.2% Geography / Channel mix margin reduction 1H FY21 • Revenue growth across all regions and channels (other than retail stores which were impacted by Government-directed store closures) • The strong growth in the US and AU Onlin
Slide 6: Inventory Movements Reconciliation
INVENTORY MOVEMENTS RECONCILIATION • Strategic investment in inventory to offset global disruption to supply chains and to support business growth. • Growth since June 21 driven by: Inventory Breakdown Dec 21 – New business – investments in Navabi, Partners and World of Curves 140.0 $125.7m to build
Slide 7: 1H FY22 Operational & Strategic Highlights
1H FY22 OPERATIONAL & STRATEGIC HIGHLIGHTS OPERATIONAL HIGHLIGHTS STRATEGIC HIGHLIGHTS • ANZ online business grew 42%, more than • Strong customer acquisition and growth in category market offsetting any store closure disruption; addition of share as City Chic continues to leverage the expanded glob
Slide 8: Sales Performance by Channel & Region
SALES PERFORMANCE BY CHANNEL & REGION REVENUE BY CHANNEL CONTRIBUTION BY CHANNEL 1H FY21 1H FY22 Sales Sales $104.8m $119.0m $178.3m Sales Comp 1% Growth Growth 3% 1H FY22 Revenue Sales 3.0 2% 2% Reporting Constant (A$m) Growth2 5.1 Currency Currency1 28.1 16% Online 142.1 72.2% 75.6% 52.5% 4.4 1.2
Slide 9: Customer-Focused Growth Strategy
CUSTOMER-FOCUSED GROWTH STRATEGY Plus-size focus, global customer base growth, digital GLOBAL CUSTOMER BASE GROWTH INCREASED ONLINE PENETRATION Rolling 12-month Global Online Sales2 $m Customer Numbers1 '000 77% Online 64% Sales YoY 73% Growth Online Sales 237 73% 1,316 Online 56% 65% Sales YoY 189
Slide 10: Business Overview and Strategy
2. BUSINESS OV ERV IEW AND S T R AT E G Y 10
Slide 11: Global Product Range Executing Our Strategy
THE DESTINATION FOR HER EVERY LIFESTYLE NEED GLOBAL GLOBAL DIGITAL GLOBAL EXECUTING OUR PRODUCT RANGE STORE FRONTS PLUS-SIZE MARKET STRATEGY Deliver the Global Plus-size Collective’s significant Customer across various product range to the global plus-size 5k+ 15+ lifestyles: fashion, youth, convers
Slide 12: Brands
avenue p your everyday style effortlessly Taking inspi ation from of-the-moment street styles and put-together. Mix-and-match our capsule festival vibes, the CCX girl is always ready for a selfie. wardrobe separates for an instant style update. Keep your look edgy with graphic tees, camo prints, and
Slide 13: Customer-Centric Operating Model
CUSTOMER-CENTRIC OPERATING MODEL Nimble operating model; respond quickly to changes in demand Highly engaged Diversified and growing Product Range customer base Long-standing Executive Omni-channel team that strategy; multiple knows the touchpoints customer Geographically Own the diverse customer, o
Slide 14: Global Business Overview
GLOBAL BUSINESS OVERVIEW AMERICAS EMEA AUSTRALIA & NEW ZEALAND Wholesale, Wholesale, Marketplace, 6% 2% 5% Marketplace, 2% Stores, 35% $77.2m $20.3m $80.8m Revenue Revenue Revenue Online Online Websites, 92% Websites, 93% Online, 65% • 582k Active Customers1 (42% YoY • 251k Active Customers1,4 • 482
Slide 15: The Future of Digital Privacy
THE FUTURE OF DIGITAL PRIVACY Data protection has experienced a paradigm shift over the last few years with GDPR in Europe, CCPA in California & PIPEDA in Canada. As a global digital retailer, we are looking to adapt to these changes by moving from client-side to server-side tracking. We are removin
Slide 16: Global Plus-Size Landscape
GLOBAL PLUS-SIZE LANDSCAPE Currently address US$100bn+ of the US$180bn1 total global plus size market Entry into US$45bn European market in FY22 with Navabi acquisition2 • Plus-size market forecast to grow c.7%1 annually • Average annual spend in plus-size is ANZ, $2bn currently materially less than
Slide 17: Current Brand Portfolio & Strategic Opportunity
CURRENT BRAND PORTFOLIO & STRATEGIC OPPORTUNITY Opportunity to address global plus-size market with our portfolio of brands FASHION / YOUTH CONSERVATIVE INTIMATES OUR BRANDS AUSTRALIA & Market Entry Opportunity Market Share Expansion and Greater Share of Wallet NEW ZEALAND (Launched August 2021) Gre
Slide 18: Key Initiatives to Lead a World of Curves
KEY INITIATIVES TO LEAD A WORLD OF CURVES MARKET SHARE EXPANSION MARKET SHARE EXPANSION MARKET ENTRY FOR MARKET ENTRY IN EUROPE IN THE AMERICAS IN THE UK ‘CONSERVATIVE VALUE’ IN ANZ • Significant market share • Significant market share • Significant market share opportunity in • Significant market s
Slide 19: An Update on Recent Acquisitions
AN UPDATE ON RECENT ACQUISITIONS • City Chic completed the asset • Completed the integration of the • In early 1H FY22, Evans was materially acquisition of USA plus-size business including team, website and impacted by labour shortages in the marketplace CoEdition’s customer lists, warehouse UK, par
Slide 20: Global Marketplace Partnerships
GLOBAL MARKETPLACE PARTNERSHIPS1 Partnerships in new and existing regions form a part of our customer acquisition strategy; leveraging infrastructure to profitably bring awareness to our global brands as trends continue online Established 1H FY22 New in 2H FY22 ANZ AMERICA EMEA (UK + Middle East) 1.
Slide 21: 1H FY22 Financial Review
3. 1H FY22 FINANCIAL REVIEW 21
Slide 22: Financial Performance
FINANCIAL PERFORMANCE CONTINUED STRONG REVENUE GROWTH • Strong comp sales growth1 in 1H FY22 driven by ANZ online and a particularly strong A$m: Continuing Operations 1H FY20 1H FY21 1H FY22 performance in the US websites with Avenue.com trading materially above pre-acquisition Sales Revenue 104.8 1
Slide 23: Cash Flow
STRATEGIC INVESTMENT IN INVENTORY TO CASH FLOW MANAGE GLOBAL SUPPLY CHAIN A$m: Continuing Operations 1H FY20 1H FY21 1H FY22 DISRUPTIONS Receipts from customers 114.8 126.4 196.9 • Normalised Operating Cash Outflow of $21.6m for 1H FY22 vs Cash Inflow of $21.5m in 1H FY21. Net normalisation adjustme
Slide 24: Financial Position
FINANCIAL POSITION STRONG BALANCE SHEET FOR GROWTH A$m 27 Dec 20 27 Jun 21 26 Dec 21 • Cash position as at 26 Dec 21 of $38.7m and nil borrowings. Since 27 June 2021, key non-operating movements in the cash balance include: Cash and cash equivalents 83.0 71.5 38.7 – Acquired Navabi for $4.3m (net of
Slide 25: FY22 Update and Outlook
4. FY22 UPDATE AND OUTLOOK city chic collective
Slide 26: FY22 Update and Outlook
FY22 UPDATE AND OUTLOOK • CCX notes there is uncertainty given the current impacts of macroeconomic conditions and COVID-19 on consumer confidence. • In the first 8 weeks of H2, CCX has continued to deliver top line and comparable sales growth: o While still strong, Online growth rates in the key ma
Slide 27: Appendix
5. APPENDIX city chic collective
Slide 28: Impact of AASB16
IMPACT OF AASB16 AASB16 adopted from 1 July 2019 Profit & Loss (Continuing Operations) 1H FY22 1H FY22 1H FY21 AASB 16 1H FY22 Underlying Variance Variance Statutory 2 Underlying Underlying A$ million Impact Pre AASB16 Adjustments 2 2 $ % Post AASB16 Pre AASB16 Pre AASB16 Sales 178.3 - 178.3 - 178.3
Slide 29: Earnings Reconciliation
EARNINGS RECONCILIATION Group A$ million 1H FY21 1H FY22 Underlying EBITDA 23.3 23.5 Depreciation & amortisation (3.1) (3.1) Underlying EBIT 20.2 20.4 Net Interest expense (0.2) (0.2) Underlying NPBT 20.0 20.2 Taxation on Underlying NPBT (6.0) (6.2) Underlying NPAT 14.0 14.0 Transaction-related item
Slide 30: Ethical Trade Update
ETHICAL TRADE UPDATE We welcome the new opportunities and recognise the challenges that come with the growth of brands and the diversification of our supply chain. Our goal is to work together with all our global partners for a more positive impact to people and planet. We commit to source product i
Slide 31: Store Network
STORE NETWORK • 94 stores as at the end of December 2021 • Portfolio rotation to newer fit-outs in 1H FY22: 8 new stores opened, 3 closures; 8 relocations to a larger format site 1 • 7 larger format flagship stores with average footprint of c.220m2 23 • 21 newer stores in the ‘Gold’ look design and
Slide 32: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER This presentation has been prepared by City Chic Collective Limited (the “Company”). It contains general background information about the Company’s activities and does not purport to be complete. It should be read in conjunction with the Company’s other periodic and con
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