City Chic has revealed the ongoing impact of supply chain disruption as a result of the COVID-19 pandemic.
In a FY22 trading update, the retailer confirmed it is reviewing retail pricing globally and could raise prices in certain product categories.
City Chic expected its net debt position to be within the region of $6-$12 million at financial year end, subject to demand and supply chain volatility.
Many ports in China are closed as a result of the country’s Covid Zero policy and the retailer is "proactively" managing inventory movements, City Chic revealed.
“We have the inventory ready, and in market, to drive growth in all regions, protecting demand in the balance of 2H and into Q1 FY23.”
Despite supply pressures, City Chic earnings projections remained optimistic.
It expects H2 FY22 EBITDA to exceed 1H FY22 EBITDA, subject to ongoing consumer demand in the key trading months of May and June.
The announcement came in a financial update for the 17 trading weeks from 27 December 2021 to 24 April, 2022.
Other highlights include:
* The second half to date saw strong total sales growth at 25% year on year (YoY)
* USA total sales growth of 47% in H2 FY22 to date
* Evans is performing at pre-acquisition levels
* Australian sales performing above last year, with online channels up 13% in H2 FY22 to date
* Global partner sales growth of 465% in H2 FY22 to date