City Chic Collective is a specialty retailer of women’s fashion products, focusing on plus-size women’s apparel, accessories and footwear products. The company operates in Australia, New Zealand, Europe and the US. The company recently announced a potential acquisition of a U.S. plus size e-commerce business, in line with its business strategy. The details of the acquisition are yet to be announced and will be subject to confirmation of the transaction. Let’s have a general look at the company. We will then discuss our views on the potential acquisition.
According to FY19 results:
Revenue of $148.4 million, up 12.55%
Comparable sales growth rate of 12.2%
Gross margin 57.8%, down from 59.0%
Underlying EBITDA of $24.9 million, up 25%
Underlying EBITDA margin 16.8%, up from 15.1%
EPS before significant items 7.4 cents
The company has 104 stores in Australia and New Zealand, an online platform, and a growing partner business in North America and Europe. Despite...