The City Chic Collective Ltd (ASX: CCX) share price has gone gangbusters over the last year to climb from 19 cents last January to as high as $1.40 in October 2018 before dropping back to 90 cents today. Still from 19 cents to 90 cents in a year is a 350% gain so let's consider what's powering this rocketing share price.
The first point to note is that City Chic Collective is the former Alexandria-based Specialty Fashion Group that recently sold the Millers, Katies, Autograph and Rivers brands to Noni B which is another Alexandria-based rag trade operator.
However, it kept it most profitable and successful City Chic business that as a standalone operation delivered 12.9% same store sales growth in FY 2018 to deliver EBITDA of $19.9 million on revenue of $132 million. It's the restructure and very strong same-store sales growth, growing online sales, and margins that are all helping the share price soar.
The retailer also has a net cash position of $25 million and is likely to impress some small-cap enthusiasts.
