City Chic Collective Limited · ASX:CCX
City Chic Collective — FY2019 Earnings Presentation
24 slides from City Chic Collective's earnings presentation, Aug 27, 2019
Slide 1: Leading a World of Curves – FY19 Full Year Results
LEADING A WORLD OF CURVES FY19 FULL YEAR RESULTS 27 August 2019
Slide 2: Overview
Overview • Strong full year FY19 result with 12.2% comparative sales growth and Underlying EBITDA growth of 25% – $19.2m Reported PBT from continuing operations – $24.9m Underlying EBITDA from continuing operations; EBITDA margin of 16.8% • Fully franked final ordinary dividend of 1.5cps declared –
Slide 3: Contents
CONTENTS 1 City Chic Collective 2 FY19 Results Overview 3 FY19 Financials Review 4 Strategy Overview & Outlook Appendix
Slide 4: City Chic Collective
1 CITY CHIC COLLECTIVE
Slide 5: What We Stand For
What We Stand For LEADING A WORLD OF CURVES OUR VISION Brand BOLD SEXY GLAM CHIC Mission We Are We Fit for We Are a We Create Fearless Confidence Sisterhood Unique Experiences FY19 Full Year Results 5
Slide 6: Positioned For Success
Positioned For Success • We have an emotional connection with and deep understanding of our customer • Longstanding executive team1 with proven track record • Leading position in an underserviced segment • Reactive customer-led supply chain • Majority of sales are made at full-price with limited in-
Slide 7: Leading Omni-Channel Retailer
Leading Omni-Channel Retailer ONLINE WEBSITE Customer-centric approach STORES Customer does not see a channel, they see a brand ONLINE We need to be where she wants us to be, WHOLESALE1 when she wants us to be there MARKETPLACES2 1. Partners own the product and fulfil the sale (store and/or online d
Slide 8: FY19 Results Overview
2 FY19 RESULTS OVERVIEW
Slide 9: FY19 Financial Highlights
FY19 Financial Highlights Strong top line and comp growth, higher earnings margin • Comparable sales growth of 12.2%1 and top line sales growth of 12.6% • Gross margin of 57.8% vs 59.0% pcp $148m $24.9m Global Sales Underlying - Shift in channel mix to online and growth of wholesale driving marginal
Slide 10: FY19 Operational Highlights
FY19 Operational Highlights Progress across all channels and regions • Online represents 44%1 of total sales (FY18: 36%) - 36% growth vs FY18 104 385K Active Stores2 - Strong growth for ANZ and US website; the most profitable channel Customers - Active customer base growth globally Channel: Contribu
Slide 11: Operational Achievements in FY19
Operational Achievements in FY19 Initiatives across all channels and Opened 9 new stores and 3 conversions to larger format stores regions have delivered a strong result in FY19 Expansion of product offering with additional categories online (now 3x range online vs in stores) Continued push into the
Slide 12: Track Record of Delivering Consistent Growth
Track Record of Delivering Consistent Growth1 SALES ($m) COMP SALES GROWTH2 ONLINE SALES PENETRATION3 148.4 15.0% 44% 131.9 12.2% 36% 125.1 29% 5.6% FY17 FY18 FY19 FY17 FY18 FY19 FY17 FY18 FY19 UNDERLYING EBITDA ($m) UNDERLYING EBITDA MARGIN GROSS MARGIN % 24.9 16.8% 59.0% 15.1% 57.6% 57.8% 19.9 8.9
Slide 13: FY19 Financial Review
3 FY19 FINANCIAL REVIEW
Slide 14: FY19 Results Overview
FY19 Results Overview FINANCIAL PERFORMANCE Sales Revenue • 12.2% CSG1 Gross Profit • Group margin from to 59.0% to 57.8%, greater online mix and $148.4m • 44% online penetration $85.9m growth in wholesale EBITDA2 • 16.8% margin, up from 15.1% pcp PBT2 • 14.3% margin, up from 10.9% pcp (Underlying)
Slide 15: Financial Performance
Financial Performance A$m FY18 FY19 Continuing Operations: Underlying • Strong comp sales growth despite cycling high growth in FY18; driven by more full price sales and performance in online Sales Revenue 131.9 148.4 channels Revenue Growth vs PCP 5.5% 12.6% • Top-line sales growth relative to comp
Slide 16: Cash Flow
Cash Flow A$m FY181 FY19 • Normalised operating cash flow of $21.5m in FY19; adjusted for Continuing Operations outflows associated with the divested brands, the transaction and the transition2 and earlier settlement for select suppliers on Receipts from customers 148.3 163.6 more favourable pricing
Slide 17: Financial Position
Financial Position A$m 1 Jul 18 30 Dec 18 30 Jun 19 • 30 June 2019 and 30 December 2018 presents post-transaction Cash and cash equivalents 28.9 35.5 23.2 standalone balance sheet for CCX; 1 July 2018 presents divested brands as held for sale Inventories 15.8 15.2 19.4 Other 4.2 6.0 5.9 • Strong net
Slide 18: Strategy Overview & Outlook
4 STRATEGY OVERVIEW & OUTLOOK
Slide 19: International Multi-Channel Growth Business
International Multi-Channel Growth Business Women’s plus size apparel market in ANZ is estimated to be 1.0bn 1; City Chic has ~10% share Significant opportunity in North America and Europe: >$50bn1 women’s plus size apparel market • Strategy to accelerate growth in customer base; drive customers to
Slide 20: FY20 Outlook
FY20 Outlook • Positive comparable sales growth year to date and expected in FY20 • Significant growth runway in ANZ as we continue to expand our offering and store network • Continue to drive profitable growth in the US by driving expansion of our customer base, new partnerships and tailoring opera
Slide 21: Appendix
APPENDIX
Slide 22: Earnings Reconciliation
Earnings Reconciliation Continuing Discontinued Group A$m FY18 FY19 FY18 FY19 FY18 FY19 Underlying EBITDA 19.9 24.9 4.1 - 24.0 24.9 Depreciation & amortisation (3.9) (3.9) (16.3) - (20.2) (3.9) Underlying EBIT 16.0 20.9 (12.1) - 3.9 20.9 Net Interest income / (expense)1 (1.6) 0.4 - - (1.0) 0.4 Under
Slide 23: Ethical Trade Update
Ethical Trade Update 1 2 3 It is a right of every worker in our We are committed to educating We promise to source product in supply chain to enjoy safe and our business, and suppliers, on a recognised, RESPONSIBLE and healthy working conditions in an modern slavery and providing transparent supply
Slide 24: 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 current as at the date of the presentation. It is information given in summary form and does not purport to be