City Chic Collective Limited · ASX:CCX
City Chic Collective — FY2023 Earnings Presentation
28 slides from City Chic Collective's earnings presentation, Aug 30, 2023
Slide 1: Leading a World of Curves: FY23 Results
city chic collective LEADING A WORLD OF CURVES FY23 RESULTS 30 August 2023
Slide 2: Contents
CONTENTS 1. FY23 Result Overview 2. Strategic Review 3. Trading Update & Outlook 4. Appendix Phil Ryan, CEO Peter McClelland, CFO
Slide 3: Overview
OVERVIEW 1. In FY23 inventory was rightsized and City Chic returned to a positive cash position in a challenging environment. 2. The strategic review confirmed the market opportunity in ANZ and the USA and the path to profitability, through the economic cycle, is to refocus on what made us great: Am
Slide 4: FY23 Result Overview
1. FY23 RESULT OVERVIEW city chic collective
Slide 5: FY23 Results Overview
FY23 RESULTS! OVERVIEW Results reflect a challenging environment and right sizing inventory GLOBAL ACTIVE SALES $268.4m Costomers O-97M (17%) vs FY22 Ses vee LOBAL ONLINE TRACE 49.9m PENETRATIONS 76% (16%) vs FY22 (LTM) (3%) vs FY22 (2%) vs FY21 4% vs FY21 NET CASH INVENTORY €53 8m CASI $10.9m (73%)
Slide 6: Financial Performance
F | N A N C | A L Pp E R FO R M A N C E! Sales down 15.8% excluding the 53'4 Week in comparative period Stores and partners flat. + Online down 21.8% cycling strong prior comparable period. A$m FY21 FY22 FY23 Gross trading margin percentage zi * 18.7% pts decline in Gross Margin %: Sales Revenue: 25
Slide 7: Financial Position
FINANCIAL POSITION Inventory reductions on track Ag$m 27 Jun 21 3 Jul 22 2 Jul 23 Cash and cash equivalents 715 10.0 12.4 Inventories 67.0 195.9 53.8 Other 12.5 15.9 143 Assets held for sales - - 13.2 Current Assets 151.0 221.7 93.7 Property, plant, equipment 10.2 15.4 13.3 Other Receivables - - Ol
Slide 8: Strategic Review
2. STRATEGIC REVIEW city chic collective
Slide 9: Significant Market Opportunity
SIGNIFICANT MARKET OPPORTUNITY The recent strategic review confirmed we have a clear opportunity in ANZ and the USA Global women’s plus size clothing market worth USD196b in 2022! Projected CAGR 6.0%! US women’s plus size clothing market USD54b! Online Projected CAGR 7.2%! USA online market for spec
Slide 10: The Path to Profitable Growth
THE PATH TO PROFITABLE GROWTH As a result of the strategic review we are renewing focus on our core customer and product, simplifying the business and reducing costs Amplify our focus on Her, forging genuine emotional connections Put Her first: leverage our rich customer understanding developed over
Slide 11: Putting Her First
PUTTING HER FIRST Getting back to what drove our success by focusing on Her Creating value for Her Strengthen existing customer trust & engagement We understand Her needs in fit, fabric and styling, and Her shopping behaviours. We have unique expertise in high consideration categories, particularly
Slide 12: Attractive Customer Opportunity
ATTRACTIVE CUSTOMER OPPORTUNITY Strategic review confirmed opportunity to focus on our valuable target customer Our target customer is highly valuable Higher frequency (-45% higher in Australia and © Higher spend with sell price ~35% greater than NA market in Australia and over 100% higher in the US
Slide 13: Clear Market Opportunity
CLEAR MARKET OPPORTUNITY Strategic review identified that Specialty Plus Size retailers are best-placed to win on experience with a focus on fit and style, which is City Chic’s core strength , Mainstream Discount Descri n : . . Marketplaces inclusive retailers plus size SHEIN Walmart >|< amazon city
Slide 14: Quality Product That Delights
QUALITY PRODUCT THAT DELIGHTS Meeting an emotional need to delight our customer beyond Her functional needs Simplify range and focus on fashionable styling Leverage our strong capability to design and source a more targeted range with higher value assortment, creating one range focused on City Chic
Slide 15: A More Targeted Range
A MORE TARGETED RANGE Focus on the product categories and lifestyles that matter to Her that drive a higher retail price Build on our strengths FS Better day and event wear, especially dresses Targeted additions Elevated casual with greater trend focus, to deepen emotional connection Intentional rat
Slide 16: Simplify the Business
SIMPLIFY THE BUSINESS Reducing operating costs to deliver sustainable and profitable growth Streamline operating model Increase ability to rapidly respond to our customer. Material reduction in options with unified global range based on City Chic elevated price points. Support office headcount reduc
Slide 17: EMEA Exit Supports Simplification
EMEA EXIT SUPPORTS SIMPLIFICATION Aligns with strategy and enables focus on high-potential ANZ and US markets Strategic rationale for EMEA exit Pursuing our valuable core customer would have been expensive and the near-term economic outlook remains challenging. Simplifies our supply chain. Allows us
Slide 18: Trading Update & Outlook
3. TRADING UPDATE & OUTLOOK city chic collective
Slide 19: Trading update
• • • • • • sell through of its new seasonal product in both markets as transition to better end ranges
Slide 20: FY24 Outlook
FY24 OUTLOOK Navigating economic headwinds > C C C @) Q) C Vv Vv XY NY NY NY Expect to trade profitably in H2 of FY24 as benefits of strategic plan are realised’. Market conditions remain uncertain. Cost out implemented in H1. New season inventory in market ready for key trade periods in Q2 with a s
Slide 21: Summary
SUMMARY Inventory actions completed - now we need to focus on the Customer and returning to profitability ©} ey FOCUSING ON KEY MARKETS + Market-leader in Australian plus-size category. + Avenue is a known brand in the USA driving traffic. + Opportunity for store expansion and new stores in ANZ. + S
Slide 22: Appendix
4. APPENDIX city chic collective
Slide 23: Sales by Channel & Region
SALES BY CHANNEL & REGION Sales reflect lower consumer demand in all regions REVENUE BY Sales Sales Growth Sales Growth REGION Tee came Curency FY ANZ 1411 (12.8%) (3.2%) (12.8%) AMERICAS 127.3 (21.6%) 20.6% (22.9%) Total 268.4 (17.2%) 6.7% (17.9%) Sales Growth Sales Growth REVENUE BY IHFY23._ Sales
Slide 24: 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 was the on consolidation of key partnerships and simplifying our supply chain where possible to help reduce waste. We continue to build on our ethical sourcin
Slide 25: Store Network
STORE NETWORK city chic collective + 86 own stores as at period end + Portfolio rotation to newer fit-outs in FY23: 3 new stores opened, 7 closures; 4 relocations/refits moving stores with ‘old’ look to the ‘Gold’ design look. + 17 larger format flagship stores with average footprint of c.200m? with
Slide 26: Impact of AASB16 - Continuing Operations
IMPACT OF AASBI6 - CONTINUING OPERATIONS AASBIE6 adopted from 1 July 2019 Profit & Loss FY23, FY23 FY23 FY22 Agmiion Statutory Underving,Undering AASB Underving — undrging —YaUR® Variance AASBI6 AASBI6 AASBI6 Sales 268.4 - 268.4 - 268.4 324.1 (55.7) (17.2%) related Costs ee entory (160. - 160.1) - 1
Slide 27: Impact of AASB16 - Including Discontinued Operations
IMPACT OF AASBI6 - INCLUDING DISCONTINUED OPERATIONS AASBIE6 adopted from 1 July 2019 Profit & Loss FY23, FY23, FY23, FY22 Asmiion ——SHQUONY—_Uedering,Ungeing AASB, Undr¥vna uncer YM Variance AASBI6 AASBI6 AASBI6 Sales 308.7 308.7 308.7 369.2 (60.5) (16.4%) ae ee eee atory (200-8) (200.6) (2006) 150
Slide 28: 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