Full Year 2024 City Chic Collective Ltd Earnings Call Transcript
Key Points
- City Chic Collective Ltd (CCCHF) outperformed its pro forma underlying EBITDA forecast for FY24 by 10%, driven by margin improvements.
- The company completed a business transformation, including a brand and product refresh, and a shift to focus on high-value customers.
- Significant cost reductions were achieved, including a 50% reduction in support office headcount and a 17% reduction in employee expenses.
- In the first eight weeks of FY25, the company delivered a 28% growth in trading gross margin dollars, driven by a 58% uplift in average selling price.
- City Chic Collective Ltd (CCCHF) set ambitious financial targets for FY25, aiming for $142 million to $160 million in revenue and $11 million to $18 million in EBITDA.
- Revenue was down 28% in FY24, with store performance being a bright spot but overall demand impacted by global cost of living pressures.
- The company experienced fulfillment issues due to a warehouse move in the USA, leading to almost no product drops in May and June.
- Online revenue was down 13% in the first eight weeks of FY25, as the previous year's high discounting drove unit volume but not profitability.
- The company is still recovering from a challenging year online, with traffic up but conversion rates impacted by cost of living pressures.
- City Chic Collective Ltd (CCCHF) faces ongoing volatility in trading conditions, with a need to maintain brand positioning and recover customer demand in key markets.
(audio in progress) Please go ahead.
Morning, everyone, and thanks for joining us. I'm Phil Ryan, the CEO of City Chic Collective. I'm joined today by Peter McClelland, our CFO, and James Plummer, who will be taking the role of Interim CFO from October 18 as we've separately announced today.
I'll run through the presentation starting with the business and strategic update, and then a brief look at the FY24 financials, and then moving on to our outlook.
Looking at slide 3. We had strong positive momentum through the second half of FY24 and have taken the necessary steps to get the business back to profitability in FY25. This slide shows the four key takeaways. We outperformed the pro forma underlying EBITDA forecast for FY24 that we gave in mid-June by 10%, driven by margin improvements showing the success of our strategy. In FY24, we have completed the business transformation.
This includes a City Chic brand and product refresh, a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
