City Chic Collective Limited · ASX:CCX
City Chic Collective — FY2024 Earnings Presentation
28 slides from City Chic Collective's earnings presentation, Aug 28, 2024
Slide 1: FY24 Results & FY25 Outlook
LEADING A WORLD OF CURVES F Y 2 4 R E S U LT S & F Y 2 5 O U T L O O K 28 August 2024
Slide 2: Table of Contents
TABLE OF CONTENTS 1 Business Update 2 Strategic Update 4 FY24 Financial Summary 5 FY25 Outlook 6 Appendix PHIL RYAN, CEO PETER MCCLELLAND, CFO 2
Slide 3: FY24 EBITDA ~10% Ahead of Forecast
1 FY24 EBITDA ~10% ahead of proforma adjusted forecast1 Business transformation now complete, including sale of 2 Avenue, brand refresh, inventory normalised and cost base right-sized FY25 First 8 weeks have shown strong positive momentum in 3 strategic KPI's of Trading Gross Margin2 $, up 28% and A
Slide 4: Business Update
BUSINESS UPDATE 4
Slide 5: FY24 Results Overview
FY24 RESULTS OVERVIEW1 Underlying FY24 EBITDA 9.8% better than Proforma Adjusted Forecast2 GLOBAL SALES ACTIVE CUSTOMERS3 INVENTORY NET CASH $131.6m 481k $30.7m $3.9m (28.3%) vs FY23 (22.5%) vs FY23 (42.8%) vs FY23 UNDERLYING UNDERLYING EBIT5 STATUTORY NPAT ONLINE EBITDA4 FROM CONTINUING PENETRATION
Slide 6: Operational Highlights
OPERATIONAL HIGHLIGHTS Positive Average Selling Price and Gross Margin momentum driven by business transformation initiatives • Business transformation programs are largely completed Refocus on City Chic • Dedicated single brand offering focused on the higher value City Chic customer in ANZ and the
Slide 7: Positive Momentum in FY25
POSITIVE MOMENTUM IN FY25 Focus on driving margin with new seasonal product and marketing programs TRADING FOR THE 8 WEEKS TO 25TH AUGUST 2024 Strategy continues to deliver an uplift in Gross Margin and Average Selling Price: • Trading Gross Margin1 $ up 28% on PCP - Trading Gross Margin % up 17.7 p
Slide 8: Strategy Update
STRATEGY UPDATE 8
Slide 9: Focused Growth Strategy
FOCUSED GROWTH STRATEGY The transformation initiatives support City Chic's strategy of focusing on its higher value customer in ANZ and the US KEY STRATEGIC PILLARS Amplify our focus on Her, forging genuine Revitalise product assortments, focusing on Simplify the business and drive down costs 1 2 3
Slide 10: A Business Dedicated to Her
1 A BUSINESS DEDICATED TO HER Streamlined business with a return to a single brand focus and a strong omnichannel presence DISTRIBUTION CHANNELS5 Leveraging a long history of knowledge and experience, in an attractive market segment, under the high value City Chic brand. A customer research led bran
Slide 11: Key Performance Metrics
1 2 KEY PERFORMANCE METRICS Focus on high value customer delivering positive trends in ASP and margin continuing into FY25 ASP AND GM COMMENTARY ASP Trading GM% $70 70% • ASP and margin improvement across the year with new inventory 60% 61% arrivals in ANZ from Q2 and US in Q3 58% 59% 58% 56% • This
Slide 12: New Product Resonating
2 NEW PRODUCT RESONATING Target customer responding to our new season range Following feedback from our customers, we have evolved the product mix to include "The new range is "I love the introduction of the more elevated essentials, a better end casual amazing in Elevated Elevated Essentials, which
Slide 13: Cost Reduction Initiatives
3 COST REDUCTION INITIATIVES Total planned cost savings of $20.3m, simplifying the business for improved operating leverage Incremental Completion Realised Expected Savings2 Status Commentary Savings1 • Programs initiated in FY24 Lower operating • Operating expense cost rationalisation focused on he
Slide 14: FY24 Financial Summary
FY24 FINANCIAL SUMMARY 14
Slide 15: Summary Financial Performance
1 SUMMARY FINANCIAL PERFORMANCE Margin and Cost actions are delivering FY24 • Financial Performance is presented on a continuing business basis following the $’m: FY23 Proforma adju FY24 % to FY23 exit of Evans and Avenue sted5 Sales 183.5 131.5 131.6 (28.3%) • Underlying EBITDA loss of $8.4m is 9.8
Slide 16: Summary Financial Position
SUMMARY FINANCIAL POSITION Inventory normalised and positive net cash • Net cash position of $3.9m A$m 30 June 2023 30 June 2024 - Includes proceeds of Capital raise of $14.4m with further $3.1m received post Cash & cash equivalents 12.4 21.4 period end in July Inventories 53.8 30.7 - Net proceeds1
Slide 17: FY25 Outlook
FY25 OUTLOOK 17
Slide 18: Outlook
OUTLOOK City Chic is focused on delivering profitable and sustainable long-term growth FINANCIAL OUTLOOK • Trading conditions may remain uncertain in the short term • Expecting the higher ASP and Gross Margin trends from H2 FY24 and leading into FY25 to continue • Marketing focus on brand engagement
Slide 19: FY24 EBITDA ~10% Ahead of Forecast
1 FY24 EBITDA ~10% ahead of proforma adjusted forecast1 Business transformation now complete, including sale of 2 Avenue, brand refresh, inventory normalised and cost base right-sized FY25 First 8 weeks have shown strong positive momentum in 3 strategic KPI's of Trading Gross Margin2 $, up 28% and A
Slide 20: Thank You
Thank you for your attendance and participation www.citychiccollective.com.au 20
Slide 21: Appendix
APPENDIX 21
Slide 22: Sales by Channel & Region
SALES BY CHANNEL & REGION Sales reflect inventory clearance and a challenging consumer FY24 REVENUE REFLECTS: • Revenue from continuing businesses • Inventory clearance impacted sales in H1 Sales Revenue Sales Growth Constant Currency • ANZ was down 30.8% REVENUE BY REGION FY24 (A$m) Reporting Curre
Slide 23: 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 24: Impact of AASB16 – Continuing Operations
IMPACT OF AASB16 – CONTINUING OPERATIONS AASB16 adopted from 1 July 2019 FY24 FY23 Statutory Underlying Underlying Underlying Statutory Underlying Underlying Underlying A$millions AASB Impact AASB Impact Post AASB16 adjustments1 Post AASB16 Pre AASB16 Post AASB16 adjustments Post AASB16 Pre AASB16 S
Slide 25: FY25 Outlook Key Assumptions
FY25 OUTLOOK KEY ASSUMPTIONS Outlook Preparation Key assumptions include: The outlook has been prepared based on an assessment of City Chic’s existing ANZ and US business and head office functions. 1. With greater stabilisation of the macroeconomic environment, consumer sentiment improvements are re
Slide 26: Key Risks
KEY RISKS There are a number of factors, both specific to City Chic and of a general nature, which may affect the future operating and financial performance of City Chic, its products and the industry in which it operates.. There can be no guarantee that City Chic will achieve its stated objectives
Slide 27: Key Risks (Cont.)
KEY RISKS (CONT.) There can be no guarantee that City Chic will be able to comply with the regulatory requirements imposed on it (whether in Australia or overseas). The existence of any such failure is likely to have a materially adverse effect on City Chic. Further, there is the prospect of the cos
Slide 28: Important Notice & Disclaimer
IMPORTANT NOTICE & DISCLAIMER The following disclaimer applies to this investor presentation prepared by City Chic Collective Limited ACN 057 569 169 (City Chic) and is dated 28th August 2024 (Presentation). Summary information This Presentation contains summary information about City Chic and its a