With a recent $111 million capital raise under its belt, plus-size clothing retailer City Chic Collective (ASX: CCX) has more than doubled its profits as sales grew across Australia, New Zealand, the US and Europe.
Known for its brands City Chic, Avenue, Hips & Curves Body and UK-based Evans which was acquired in December, in the current financial year the group has also purchased Navabi, an online marketplace for third-party women's plus-sized brands based in Germany.
Statutory net profit after tax (NPAT) was up 135.3 per cent to $21.6 million.
"Our strategic vision to lead a world of curves has taken a huge step in the last 12 months despite the impacts of the pandemic," says City Chic chief executive officer Phil Ryan.
"Our razor-sharp focus on the three pillars of plus-size, digital and global customer acquisition have again delivered strong results. In the past year 73 per cent of our sales were through the online channel, and we have over one million global active customers."
The lifestyle category and segment expansion have helped drive revenue growth of 27 per cent in the Australia-New Zealand region, which accounts for more than half of its $258.5 million sales. A conservative value product was launched in Australia this month as well, which Ryan says allows City Chic to "address the broader curvy community".
The company saw 37 per cent constant currency growth in the US, its second-largest market with close to $100 million in sales.
"Despite a challenging first half, the consumer came back at the start of 2021 and we have seen this continue into FY22. Avenue.com is trading consistently above pre-acquisition revenue levels and the City Chic US website has returned to pre-pandemic growth levels," Ryan says.
The group's EMEA (Europe, Middle East and Africa) division recorded the fastest growth, albeit off a low base, with sales up 533.7 per cent at $14.4 million.
"The first six months of Evans have been pleasing with the operations profitable over the period. The integration is now complete and inventory levels are back to a commercial level, with sales already on a run rate of pre-acquisition levels," Ryan explains.
"Our UK and European marketplace partner strategy has moved forward in the second half with our brands launching on Next.co.uk and Curvissa.
"We have also agreed to extend our wholesale partnership with Alshaya Group into a franchise arrangement in over 20 Debenhams stores across the Middle East and the associated websites."
Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support