City Chic Collective Limited · ASX:CCX
City Chic Collective — H1 FY2021 Earnings Presentation
30 slides from City Chic Collective's earnings presentation, Feb 24, 2021
Slide 1: Interim FY21 Results
L E A D I NG A WO R LD O F C U RV ES INTERIM FY21 RESULTS 24 February 2021
Slide 2: 1H FY21 Result Highlights
1H FY21 RESULT HIGHLIGHTS $119m 13.5% 20.8% 801k 73% Global Sales Top Line Sales Comp Sales1 Active Customers Online Sales Growth Growth YoY Growth of 56%, Penetration3,4 adding 286k 2 $23.3m 21.8% 19.6% $13.1m 45% Underlying Underlying EBITDA 5 Underlying EBITDA 5 Statutory Sales in EBITDA5 Growth
Slide 3: Contents
CONTENTS 1 City Chic Collective 2 1H FY21 Result Overview 3 1H FY21 Financial Review 4 Outlook Phil Ryan, CEO Munraj Dhaliwal, CFO 3
Slide 4: City Chic Collective
1 CITY CHIC COLLECTIVE 4
Slide 5: Customer-Centric Operating Model
CUSTOMER-CENTRIC OPERATING MODEL Nimble operating model; respond Highly engaged Omni-channel Strong engagement through social media Own the customer, quickly to changes and growing strategy; multiple and World of Curves not the category in demand customer base touchpoints Long-standing Geographicall
Slide 6: City Chic Avenue
FIERCELY LUSTFUL EVERYDAY FASHIONABLE LINGERIE ESSENTIALS HIPS & CURVES / FOX & ROYAL MODERN FASHIONABILITY CITY CHIC AVENUE SERIOUS JUST LIKE STREET WALKING STYLE ON AIR 6 CCX EVANS CLOUDWALKER
Slide 7: Global Business Overview
GLOBAL BUSINESS OVERVIEW GLOBAL CHANNEL GLOBAL REGION CONTRIBUTION 1 CONTRIBUTION 1 • $209m global revenue (LTM)1 • 73% global online penetration (LTM)2 Wholesale Northern Online 2% Hemisphere Marketplace 2% • 801k global active customers3 45% Stores • 42m global online annual traffic (LTM)4 25% • 3
Slide 8: Global Business Overview
GLOBAL BUSINESS OVERVIEW UNITED STATES OF AMERICA UNITED KINGDOM AUSTRALIA & NEW ZEALAND (Pro-forma Evans4) Wholesale Marketplace 3% Evans Wholesale 5% 11% CC Wholesale 4% Stores 46% $92m Revenue1 $48m Revenue4 $115m Revenue1 Online 54% Online 92% Evans Online 85% • 411k Active Customers2 • 19m Evan
Slide 9: Global Plus-Size Landscape
GLOBAL PLUS-SIZE LANDSCAPE Global Plus-Size Market US$bn SIZE GROWTH ANZ, $2 Currently Addressed Market • Current market addressed by The plus-size market is forecast US, $49 CCX valued at US$58bn+1 to grow at c.7% 1 annually annually • Avg annual spend in plus-size is - Up from previously disclosed
Slide 10: Current Brand Portfolio & Strategic Opportunity
CURRENT BRAND PORTFOLIO & STRATEGIC OPPORTUNITY Current brand footprint around the globe. Opportunity to address global market with our portfolio of brands FASHION / YOUTH CONSERVATIVE VALUE INTIMATES AUSTRALIA & NEW ZEALAND Market Share Expansion and Greater Share of Wallet Market Entry Opportunity
Slide 11: Key Initiatives to Lead a World of Curves
KEY INITIATIVES TO LEAD A WORLD OF CURVES • Significant market share opportunity in the US$49bn1 market MARKET SHARE • Cross selling of City Chic product to the Avenue customer is tracking well EXPANSION IN THE USA • Expand marketing campaigns to grow customer base and to re-engage customers • Expan
Slide 12: Acquisition Update: Evans
INTRODUCING ACQUISITION UPDATE POST ACQUISITION PRIORITIES • Completed acquisition of UK-based • Introduce a wider range of product and Evans eCommerce and wholesale lifestyles business on 23 December 2020 for £23.1m (A$41.0m) • Optimise as a digitally led business ACQUISITION HIGHLIGHTS • Operating
Slide 13: A Year of Avenue
A YEAR OF Avenue ranked one of • Earnings accretive and trading profitably; exceeding sales and earnings the best 2021 expectations Women’s Fashion • Store customer re-engagement underway through increasing our spend in direct (single brands) by mail and digital retargeting, with pleasing early sign
Slide 14: 1H FY21 Result Overview
2 1 H F Y 2 1 R E S U LT O V E R V I E W 14
Slide 15: 1H FY21 Results & Operational Highlights
1H FY21 RESULTS & OPERATIONAL HIGHLIGHTS FINANCIAL HIGHLIGHTS OPERATIONAL HIGHLIGHTS 1H FY21 sales revenue of $119.0m, representing 13.5% YoY total sales growth and 20.8% comparable sales growth1 Entry into the UK Expanded online market with acquisition offering including Gross trading margin2 of 61
Slide 16: Sales Performance by Channel & Region
SALES PERFORMANCE BY CHANNEL & REGION REVENUE BY CHANNEL CHANNEL: CONTIBUTION1 • Online represents 73% of total sales1,2 75.4 104.8 119.0 1.2 - Strong active customer base growth 12 months to Dec 20 12 months to Dec 19 4.4 1.4 - Avenue contribution represents 26 weeks 5% 4.7 33.8 2% 2% 6% for 1H FY2
Slide 17: Customer-Focused Growth Strategy
CUSTOMER-FOCUSED GROWTH STRATEGY Plus-size focus, global customer base growth, digital GLOBAL CUSTOMER BASE GROWTH INCREASED ONLINE PENETRATION Customer Numbers1 '000 Rolling 12-month Global Online Sales2 $m +21% Growth 73% +29% Online Growth 65% Sales +34% Online Growth 801 Sales 53% +3% Online 151
Slide 18: 1H FY21 Financial Review
3 1H FY21 FINANCIAL REVIEW 18
Slide 19: Financial Performance
FINANCIAL PERFORMANCE • Strong comp sales growth1 in 1H FY21 driven by online growth in ANZ and the US, as well as buoyant trading in stores A$m: Continuing Operations 1H FY19 1H FY20 1H FY21 • Impact on topline sales set out on following slide Sales Revenue 75.4 104.8 119.0 • Gross trading margin %
Slide 20: 1H FY21 Profit & Loss Impacts
1H FY21 PROFIT & LOSS IMPACTS Sales Costs of Doing Business Additional 15 weeks contribution from Avenue vs 1HFY201 Increased freight costs, particularly in the US, due to large temporary freight surcharges and disruption caused by Government directed temporary closure of Victorian stores COVID-19 f
Slide 21: Cash Flow
CASH FLOW • Normalised Operating Cash Flow of $21.5m for 1H FY21 vs $17.1m in 1H FY20. Net normalisation adjustments of $0.2m to the 1H FY21 Statutory A$m 1H FY19 1H FY20 1H FY21 Operating Cash Flow includes: – Reclassification of rental payments to financing cash flows in relation Continuing Operat
Slide 22: Financial Position
FINANCIAL POSITION • Cash position as at 27 Dec 2020 of $83.0m and nil borrowings. Since A$m 29 Dec 19 28 Jun 20 27 Dec 20 28 June 20, key non-operating movements in the cash balance include: Cash and cash equivalents 14.9 21.4 83.0 – Received net proceeds from the Placement and SPP of $108.6m Inven
Slide 23: Outlook
4 OU TLOOK 23
Slide 24: FY21 Update and Outlook
FY21 UPDATE AND OUTLOOK Integration of Invest in marketing Strong positive Introduction of Evans and to drive comparable sales conservative introduction of re-engagement growth in 2H to product stream to wider product and new customer date ANZ range acquisition Rotation of store Introduce Re-start p
Slide 25: Appendix
5 APPENDIX 25
Slide 26: Impact of AASB16
IMPACT OF AASB16 AASB16 adopted from 1 July 2019 Profit & Loss (Continuing Operations1) 1H FY21 1H FY21 1H FY20 AASB 16 1H FY21 Underlying Variance Variance Statutory 2 Underlying Underlying A$ million Impact Pre AASB16 Adjustments 2 2 $ % Post AASB16 Pre AASB16 Pre AASB16 Sales 119.0 - 119.0 - 119.
Slide 27: Earnings Reconciliation
EARNINGS RECONCILIATION Continuing Discontinued Group A$ million 1H FY20 1H FY21 1H FY20 1H FY21 1H FY20 1H FY21 Underlying EBITDA 19.1 23.3 - - 19.1 23.3 Depreciation & amortisation (2.3) (3.1) - - (2.3) (3.1) Underlying EBIT 16.8 20.2 - - 16.8 20.2 Net Interest expense1 (0.1) (0.2) - - (0.1) (0.2)
Slide 28: Ethical Trade Update
ETHICAL TRADE UPDATE Right of every worker in our supply chain to enjoy safe and healthy We care for the environment and Working together to empower our workers and give them Sourcing product in a recognised, responsible working conditions in an the management of waste in our a voice in the supply c
Slide 29: Store Network
STORE NETWORK • 96 stores as at the end of December 2020 • Portfolio rotation to newer fit-outs in 1H FY21: 7 new stores opened, 4 closures; 1 relocation to a larger format site • 6 larger format flagship stores with average footprint of 213 sqm • 18 newer stores in the ‘Gold’ look design and with a
Slide 30: 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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