City Chic (ASX:CCX) share price jumps 13% to record high on strong FY21 growth

City Chic shares are flying on Thursday. Here's why…

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The City Chic Collective Ltd (ASX: CCX) share price has been a very strong performer on Thursday.

In morning trade, the plus sized fashion retailer's shares have jumped 13% to a record high of $6.19 following the release of its full year results.

City Chic share price jumps after strong sales and profit growth

  • Sales revenue up 32.9% to $258.5 million
  • Comparable sales growth of 31.6%
  • Online sales growth of 49.3%
  • Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 59.8% to $42.4 million
  • Underling net profit after tax up 80.6% to $24.9 million
  • No dividend for FY 2021

What happened in FY 2021 for City Chic?

For the 12 months ended 30 June, City Chic reported a 32.9% (38.5% in constant currency) increase in sales revenue to $258.5 million.

This was driven by a 55.6% increase in online sales to $184.6 million and an 11.2% increase in Stores revenue to $67 million. This was offset slightly by weakness in Marketplace and Wholesale revenues.

Strong sales growth was achieved across all regions, which led to market share gains in the ANZ region.

Thanks to margin expansion, City Chic's earnings grew at an even quicker rate. City Chic's net profit after tax was up 80.6% on an underlying basis to $24.9 million.

What did management say?

City Chic's Chief Executive Officer and Managing Director, Phil Ryan, commented: "Our strategic vision to lead a world of curves has taken a huge step in the last twelve months despite the impacts of the pandemic. I am proud and thankful for the way our team has remained committed to delivering for our customers."

"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% of our sales were through the online channel, and we have over one million global active customers."

What's next for City Chic?

Also giving the City Chic share price a boost today was news that it has started FY 2022 positively, with strong top line and comparable sales growth.

This will soon be boosted by a number of marketplace partnerships that are scheduled to go live in September. This includes with Walmart in the US, Debenhams in the UK, and eBay in Australia. After which, marketplace integrations with Zalando in Europe, Amazon in the UK, Target in the US, and the Iconic in Australia are due to go live later in the half. Outside that, no guidance has been given for the year ahead.

The City Chic share price is up 54% in 2021.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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