City Chic Collective Limited · ASX:CCX
City Chic Collective — H1 FY24 Earnings Presentation
23 slides from City Chic Collective's earnings presentation, Feb 27, 2024
Slide 1: Leading a World of Curves: H1 FY24 Results
city chic collective LEADING A WORLD OF CURVES H1 FY24 RESULTS 27 February 2024
Slide 2: Contents
CONTENTS 1. H1IFY24 Result Overview 2. Strategy Update 3. H1FY24 Financial Summary 4. Trading Update & Outlook 5. Appendix Phil Ryan, CEO Peter McClelland, CFO
Slide 3: H1 FY24 Result Overview
H1 FY24 Result Overview city chic collective
Slide 4: H1 Overview
H1 OVERVIEW Margin recovery into Q2 and positive margin momentum into H2 woe 4, Revenue of $106m, - Economic conditions impacting transaction volumes down 29% on PCP. - Stores performance strengthening on improved gross margin, online remains challenging Significant improvement in - Gross margin up
Slide 5: Strategy Update
Strategy Update city chic collective
Slide 6: Strategy Recap: The Path to Profitable Growth
STRATEGY RECAP: THE PATH TO PROFITABLE GROWTH With right-sized cost base focus now on driving margin and demand Amplify our focus on Her, forging genuine emotional connections Put Her first: leverage our rich customer understanding developed over many years of connection. Target our more valuable cu
Slide 7: Amplify our focus on Her, forging genuine emotional connections
1 Amplify our focus on Her, • forging genuine emotional connections • • • •
Slide 8: Revitalise product assortments, focusing on higher value product
2 Revitalise product assortments, • focusing on higher value product • • • • •
Slide 9: Simplify the business and drive down costs
3 Simplify the business • and drive down costs • • • •
Slide 10: H1 FY24 Financial Summary
H1 FY24 Financial Summary city chic collective
Slide 11: Summary Financial Performance
SUMMARY FINANCIAL PERFORMANCE! Cost cutting measures delivering business appropriate cost profile $m Sales Revenue Gross Trading Margin? Gross Trading Margin % Fulfilment costs Marketing & Advertising Expense Employee Benefits Expense Rent (Post-AASBI6) Other Underlying Cost of Doing Business* CODB
Slide 12: Strategic Cost Actions
1 STRATEGIC COST ACTIONS Cost actions deliver in H1 with sustainable benefits into H2 593 -29 53.0 29 05 H1 24 Reported CODB Employee Costs Fufilment Other H1FY24 Adjusted CODB See slide 9 for details of actions Strategic cost actions taken to right size the cost base business! Adjusted CODB base of
Slide 13: Summary Financial Position
SUMMARY FINANCIAL POSITION Inventory normalised and positive net cash Asm H1 FY23 H2 FY23 HI FY24 Cash 221 12.4 16.0 Working Capital Inventory 143.7 53.8 39.5 * Net cash position of $3.5m Pra eiintangibles 99.3 78 me * Target of 3x stock turn (excluding stock in transit) Right of use assets 376 57.0
Slide 14: Trading Update & Outlook
Trading Update & Outlook city chic collective
Slide 15: FY24 Trading Update & Outlook
FY24 TRADING UPDATE & OUTLOOK Margin recovery on track, with AOV and ASP improving and positive store momentum Trading for the 8 weeks to 25" February + Revenue is 33% below PCP, however positive margin momentum continuing with GM$ down 16% - Stores performing well with comparative full price stores
Slide 16: Q&A
Q&A city chic collective
Slide 17: Appendix
Appendix city chic collective
Slide 18: Revenue and Customer Metrics by Region
AUSTRALIA & NEW ZEALAND Stores $53.8m Online 50% Revenue 50% Revenue Reporting Currency (33%) Revenue Constant Currency (33%) Stores Revenue Reporting Currency (26%) 492k Active Customers! (down 11.4% YoY) 17.9m Annual Traffic? (down 20.0% YoY) A$232 Avg. Annual Spend’ (down 18.9% YOY) AMERICAS Part
Slide 19: Ethical Trade Update
ETHICAL TRADE UPDATE We welcome the new opportunities and recognise the challenges that come with the complex apparel supply chain. Our focus continues to be on the consolidation of key partnerships and simplifying our supply chain where possible to help reduce waste. We continue to build on our eth
Slide 20: Store Network
STORE NETWORK city chic collective 18 20 24 + 82 own stores as at period end + Full priced store network remained the same * 17 larger format stores with average footprint of c.200m? with at least 1in every state (ex. NT and TAS) + 35 newer stores in the ‘Gold’ look design and an average of c150m2 c
Slide 21: Underlying adjustments
1 Underlying adjustments are made up of 0.3m in transaction costs, 0.4m in US related warehouse strategic relocation, 0.7m in restructuring costs and 0.7m gain due to lease renegotiation with Radial
Slide 22: Thank you for your attendance and participation
Thank you for your attendance and participation www.citychiccollective.com.au
Slide 23: 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