Ann: Trading Update for the 26 weeks to 1 January 2023, page-22

agreed; now to take that a step further -It is clear the sector as a whole was hit by excess stock and heavy discounting (see Torrid’s quarterly announcements in the US where gross margins also came off 10%+ knocking their profitability in 2022 as well - Torrid has said it expected to have largely dealt with it in Q4 - raft of others like Target USA saying the same thing recent quarterly trading etc).

Unfortunately our mob invested in stock like drunken sailors (we expected some covid supply safety stock uplift but not by 900% and the entire capital raising amount), which is the point about the CEO Phil Ryan not being incentivised to think and act like an owner.

Has the sector as a whole now largely cleared excess stock? If not, what is the lag period? US retailer announcements over coming weeks will be very informative.

Re online: there is no doubt the public returned to stores in the 2 quarters till 31 December across the world, coming off the back of limited choice for in store retail, plus consumers in Euroland and UK hit by gas and inflation etc. These pressures are not unique to CCX brands.

When will online stabilise and recommence growth remains somewhat unknown.

Further, can they compete with the likes of Shein plus size and as you mention, they clearly have not integrated their acquisitions properly and/or built surrounding infrastructure for a global team as required. Evans doesn’t sell directly outside UK, Avenue doesn’t sell to Canada, despite these acquisitions being over 2 and 3 years ago.

Aussie Super has lost its patience and trust and in the executive team’s ability to do as named, execute.

For me as mentioned, on balance expect normalised Ebitda margins to be 15% circa ; otherwise, what is the point of it all.