City Chic Collective Limited · ASX:CCX
City Chic Collective — H1 FY2019 Earnings Presentation
22 slides from City Chic Collective's earnings presentation, Feb 14, 2019
Slide 1: 1H FY19 Results
For personal use only 1H FY19 RESULTS 26 Weeks to 30 Dec 2018
Slide 2: Executive Summary
EXECUTIVE SUMMARY • Strong 1H19 result with 9.6% comparative sales For personal use only growth and Underlying EBITDA growth of 22% • Fully franked dividend of 5cps • Significant growth opportunities for the business – ANZ: online lifestyle and range extensions, an expanded store footprint and enhan
Slide 3: Contents
For personal use only CONTENTS 1 Introducing City Chic 2 1H FY19 Results Overview 3 1H FY19 Financials Review 4 Strategy Overview Appendix
Slide 4: Introducing City Chic
For personal use only 1 INTRODUCING CITY CHIC
Slide 5: City Chic Collective
CITY CHIC COLLECTIVE OUR For personal use only VISION LEADING A WORLD OF CURVES Brand BOLD SEXY GLAM CHIC We Are We Fit for We Are a We Create Fearless Confidence Sisterhood Unique Experiences • City Chic is devoted to serving our curvy, fashion-forward customer and making her feel sexy and glam • L
Slide 6: Leading Omni-Channel Retailer
LEADING OMNI-CHANNEL RETAILER For personal use only Customer-centric approach Understand customer wants and spending behaviour ONLINE CITY CHIC STORES Well presented and consistent customer touchpoints Align team incentives across channels ONLINE WHOLESALE1 MARKETPLACES2 Broader ranges to better ser
Slide 7: 1H FY19 Results Overview
For personal use only 2 1H FY19 RESULTS OVERVIEW
Slide 8: 1H FY19 Financial Highlights
1H FY19 FINANCIAL HIGHLIGHTS Strong top line growth, higher margins For personal use only • Comparable sales growth of 9.6% • Gross margin of 60.4% vs 59.4% pcp $75m $15.8m Global Sales Underlying - Reduced discounting to achieve higher sell prices 1H19 EBITDA 1H19 - Improved buying discipline, cate
Slide 9: 1H FY19 Operational Highlights
1H FY19 OPERATIONAL HIGHLIGHTS Strong momentum across all channels, regions For personal use only • Online represents 40%1 of total sales (29% growth vs pcp) 104 375K - Strong growth for ANZ and US website, expanded online exclusive Active range and customer experience improvements Stores3 Customers
Slide 10: Track Record of Delivering Consistent Growth
TRACK RECORD OF DELIVERING CONSISTENT GROWTH SALES ($m)1 COMP SALES GROWTH2 ONLINE SALES PENETRATION3 For personal use only 75.4 40% 70.4 10.3% 66.8 9.6% 34% 28% 4.5% 1H17 1H18 1H19 1H17 1H18 1H19 1H17 1H18 1H19 UNDERLYING EBITDA ($m)1 UNDERLYING EBITDA MARGIN GROSS MARGIN % 15.8 21.0% 18.5% 61.4% 1
Slide 11: 1H FY19 Financials Review
For personal use only 3 1H FY19 FINANCIALS REVIEW 3 1H FY19 FINANCIALS REVIEW
Slide 12: 1H FY19 Results Overview: Financial Performance
1H FY19 RESULTS OVERVIEW For personal use only FINANCIAL PERFORMANCE Sales Revenue • 9.6% CSG2 Gross Profit • Improved margin to 60.4% $75.4m • 40% online sales $45.6m vs. 59.4% pcp EBITDA1 • 21.0% Margin EBIT1 • 19.7% Margin (Underlying) (Underlying) • CODB % of sales decreased • Relatively low ong
Slide 13: Financial Performance
FINANCIAL PERFORMANCE A$m 1H FY18 1H FY19 For personal use only Continuing: Underlying Sales Revenue 70.4 75.4 • Strong comp sales growth despite cycling high growth in prior period; driven by more full price Revenue Growth vs PCP 5.4% 7.1% sales and strong online performance Comparable Sales Growth
Slide 14: Cash Flow
CASH FLOW A$m 1H FY18 1H FY19 For personal use only Continuing • Normalised operating cash flow of $14.6m in 1H FY19; adjusted for “one-off” shortening of Receipts from customers 76.6 82.2 trade creditor terms whilst new trade facility being implemented and outflows associated Payments to suppliers
Slide 15: Financial Position
FINANCIAL POSITION A$m 31 Dec 17 1 Jul 18 30 Dec 18 For personal use only • 30 December 2018 presents post-transaction Cash and cash equivalents 27.7 28.9 35.5 standalone balance sheet for CCX Inventories 81.9 15.8 15.2 Other 11.3 4.2 6.0 • 1 July 2018 presents divested brands as held for sale and 3
Slide 16: Strategy Overview
For personal use only 4 STRATEGY OVERVIEW
Slide 17: Capitalise on Dominant ANZ Market Position
CAPITALISE ON DOMINANT ANZ MARKET POSITION Significant opportunity to grow through lifestyle and range extensions, an expanded For personal use only footprint and enhancing all customer touchpoints • Women’s plus size apparel market in ANZ is estimated to be 1.0bn1; City Chic has ~10% share • Major
Slide 18: Continue to Grow International Presence
CONTINUE TO GROW INTERNATIONAL PRESENCE Exploring optimal growth avenues with a focus on owning the customer For personal use only • Significant opportunity in North America and Europe: >$50bn women’s plus size apparel market1 – Focused on initiatives that drive profitable growth • Priority is to gr
Slide 19: FY19 Outlook
FY19 OUTLOOK For personal use only • Positive comparable sales growth in early H2 FY19, in line with expectations • No change to capex guidance of $7m • Significant growth runway in ANZ • Continue driving profitable growth in the US 1H FY19 Interim Results 19
Slide 20: Appendix
For personal use only APPENDIX
Slide 21: Earnings Reconciliation
EARNINGS RECONCILIATION Continuing Discontinued Group For personal use only A$m 1H18 1H19 1H18 1H19 1H18 1H19 Underlying EBITDA 13.0 15.8 5.4 - 18.5 15.8 Depreciation & amortisation (1.2) (1.0) (12.5) - (13.7) (1.0) Underlying EBIT 11.8 14.8 (7.2) - 4.7 14.8 Net Interest expense1 (1.0) 0.2 - - (1.0)
Slide 22: Important Notice & Disclaimer
IMPORTANT NOTICE & For personal use only DISCLAIMER This presentation has been prepared by City Chic Collective Limited (the “Company”). It contains general background information about the Company’s activities current as at the date of the presentation. It is information given in summary form and d
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