City Chic (ASX:CCX) buoys balance sheet with higher inventory

Company News

by Lauren Evans

City Chic (ASX:CCX) has seen revenue growth despite supply chain issues and labour shortages due to the pandemic in the half year to December last year.

The plus size fashion retailer has stocked up on inventory to proactively manage the risk, which is set to help them with their financial targets. Revenge over the period was up 49.8 per cent from the same period a year ago to $178.3 million.

Meanwhile earnings before interest, taxes, appreciation and amortisation was in line with prior year between $22.5 to 23.5 million, which includes an estimated $4 million hit from store closures.

“I am pleased with our trading results for the first half, with strong revenue growth in all regions despite well publicised labour shortages and impacts to global logistics and supply chains, and government directed lockdowns related to the pandemic," said City Chic chief executive Phil Ryan.

"While we acknowledge the environment remains uncertain, the performance of he business to date demonstrates the team’s ability to navigate volatile market conditions."

Shares in City Chic (ASX:CCX) are trading 11.9 per cent higher at $5.

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