The City Chic Collective Ltd (ASX: CCX) share price has skyrocketed 30% higher to $1.37 on Thursday after posting its first-half FY19 results.
City Chic 1H FY19 Highlights:
- Sales Revenue of $75.4m (up 7%) with comparable sales growth of 9.6%
- City Chic Online penetration at 40% of total sales
- Underlying EBITDA of $15.8m (up 22%) with Underlying EBITDA margin of 21.0%
- Normalised operating cash flow of $14.6m
- Gross Profit Margin improvement to 60.4% (1H FY18: 59.4%)
- Underlying cost of doing business (CODB) as a percentage oWhy the City Chic Collective share price has skyrocketed 30% higher f sales reduced to 39.5% (1H FY18: 40.9%)
- NPAT for Continuing Operations of $9.9m (EPS of 5.1 cents per share) and NPAT for the Group of $10.1m (EPS of 5.3 cents per share)
- Strong balance sheet with net cash of $35.5m (FY18: $16.1m)
Chief Executive Officer and Managing Director of City Chic, Phil Ryan, said: "We are extremely pleased with City Chic's performance in the first half across all geographies and channels. Trade was consistently strong throughout the half, including over the Christmas period. We have delivered excellent topline growth globally and at higher margins, due to a constant focus on our customer. Our online platform, which is our most profitable channel, continues to grow strongly in Australia and the United States."
Dividends return
The women's fashion retailer said that its strong cash position, earnings momentum and solid cash flow generation has allowed the company to recommence paying shareholders a dividend. The board has declared a fully franked interim dividend of 2.5 cents per share and a fully franked special dividend of 2.5 cents per share.
Outlook
City Chic reported that the first weeks of the second-half has seen continued positive sales growth in line with expectations. The company made no change to its previous guidance for FY19.
Formally known as Specialty Fashion Group Limited, the City Chic share price has soared 370% higher over the last 12 months.
