Global women's fashion retailer City Chic Collective (ASX:CCX), which released its full-year financial results on Wednesday, startled the market with a 60% increase.
Even though CCX reported an EBITDA loss, it was reduced to $8.4 million from the prior year by 47.3%.
The company's inventory management, which saw inventory drop by 42.8% to $30.7 million, impressed investors as well and represented a big step toward more effective operations.
The company's strategy change, which involved selling off the Avenue and Evans brands and concentrating on the core City Chic brand in Australia, New Zealand, and the US, was also well received by them.
In addition to showcasing the company's enormous advancements, City Chic's quick turnaround has drawn attention to its sustainability initiatives and raised concerns about whether the fashion industry is still viable for moral investors.
City Chic recognizes the significance of the materials it uses and their effect on sustainability in its ESG statement.
According to the company, it has looked into more environmentally friendly options and has started by adding "better" choice fibers to a small number of its product lines.
These fibers include recycled polyester, viscose approved by the FSC, bamboo approved by the FSC, organic cotton, and Supima cotton.
Materials certified by the Forest Stewardship Council (FSC) are referred to as "FSC-approved."
An international organization called the Forest Stewardship Council (FSC) establishes guidelines for sustainable forest management and verifies that products originate from responsibly managed forests.
approved by the FSC Wood pulp is used to make rayon, another name for viscose. When a product is FSC-approved, it indicates that the wood originates from responsibly managed forests.
Another product that can bear the FSC certification is bamboo fabric, which guarantees that the bamboo used in it is sourced responsibly.
For a number of reasons, Supima cotton—a cross between "Superior" and "Pima"—is likewise regarded as sustainable.
First off, because the material is strong and long-lasting, clothes last longer and require fewer replacements over time. Its cultivation uses less water than other varieties of cotton, and its dyeing process uses fewer chemicals, so reducing its impact on the environment.
Furthermore, in nations like the US, Supima cotton is frequently grown under stringent ethical and environmental guidelines.
Additionally, City Chic stated that it has been working with its distributors to develop packaging using highly recycled plastics.
Its distribution centers in the US will shortly begin using satchels made from at least 65% recycled materials, while those in Australia and the UK have already made the switch.
The company also declared its commitment to the UK, Germany, and France's Extended Producer Responsibility (EPR) programs.
The EPR holds manufacturers responsible for their packaging throughout its lifecycle, which attempts to reduce the burden of managing plastic waste.
