City Chic Collective's three-pronged approach to growth has held it in good stead throughout the first half, the curve retailer has revealed in its results.
The business is on a mission to create a 'World of Curves' and is doing this through investment into plus size brands, digital strategies and global customer acquisition.
As such, City Chic's global customer base grew 64% to 1.32 million customers in the first half of FY22.
With more customers, City Chic's global customer website traffic grew in the half too, lifting 71% year-on-year to 71.7 million visits.
Additionally, sales outside of ANZ accounted for 55% of total Group revenue, while online comparable sales grew 52.5%, with 83% online penetration in the half.
The Group also acquired new curve businesses in the period, purchasing European plus-sized marketplace Navabi in July 2021 and USA plus-sized marketplace CoEdition's customer lists, brand and URL in December 2021.
These pillars of growth drove City Chic Collective's revenue up 49.8% to $178.3 million in the half.
CEO and MD Phil Ryan said the results indicate the business is on the right track with its offering.
"Our revenue growth is very pleasing as we stayed focused on our three strategic pillars of plus size, digital and global customer acquisition.
"We did this through expanding the customers base both organically and inorganically while accelerating our digital growth.
"The revenue growth demonstrates that our product range and lifestyle mix across all of our assortment has global appeal," he said.
Geographically, the business recorded sales of $80.7 million in Australia and New Zealand - an increase of 14% - driven by ANZ online sales, which grew 42% in the half.
In the Americas City Chic reported sales of $77.2 million, up 62%, driven by a growing customer base and a wider assortment of products on the Avenue website, including City Chic branded products.
Meanwhile, sales in EMEA were impacted by supply chain and logistical challenges in the UK and Europe, with sales reported at $20.3 million.
Ryan added that the business expects the UK and European markets to recover well, once the supply chain issues ease.
"Our diversified global footprint has minimised the impact of the store closures in ANZ where we lost 27% of trading days in the first half dur to lockdowns.
"The Americas continues to be strong, and we believe the UK and Europe will bounce back as we continue to address the ongoing supply chain issues and continue to integrate the new businesses.
"We have also taken a strategic view of inventory levels globally. In doing so we have increased inventory levels quite significantly to give us the opportunity to have the product ready for when our customer wants it, and to support our growth despite continued global supply chain issues," he said.
The investment in inventory over 27 June 2021 was $58.7 million to $125.7 million, which supported the business through key periods such as Black Friday and Christmas in the USA and ANZ.
City Chic Collective reported underlying EBITDA of $23.5 million for the half, up 1% compared to the first half of FY21.
The business' statutory NPAT declined 5.9% to $12.3 million compared to H1 FY21.
"We achieved a pleasing underlying EBITDA in the first half," Ryan commented.
"While this was flat on last year, the two periods are not entirely comparable given last year we benefited from $10 million of COVID-related austerity measures and didn't have the two EMEA acquisitions which were breakeven at the EBITDA level as the businesses build.
"In this period we also had the negative impact of the government-directed store closures of approximately $4 million and had strong growth in online and in the Americas, which are at lower gross margins.
"Taking all of this into account, the core business in the USA and ANZ are at historical EBITDA levels," Ryan said.
City Chic Collective's net cash position at December 26 was $38.7 million with no debt drawn under the $40 million debt facility.
City Chic Collective's brands are City Chic, Avenue, Evans, CCX, Hips & Curves and Fox & Royal.