City Chic Collective delivered a 92% increase in underlying EBITDA to $12.3 million in FY26, demonstrating that the apparel retailer’s turnaround strategy is generating improved profitability despite a declining top line. Group revenue fell 3.1% to $130.5 million, but management’s deliberate reduction in USA inventory purchases in response to tariff uncertainty shows the company is prioritizing sustainable earnings over volume growth. This represents a meaningful shift in strategic focus after several years of restructuring.
The geographical split reveals divergent performances. Australia and New Zealand delivered encouraging momentum with revenue growth of 7.6% at improved margins, while the USA business remained profitable despite navigating a challenging trading environment and managing temporary inventory constraints. This two-speed growth pattern suggests the company’s core domestic market remains resilient, while international expansion is being carefully managed through near-term headwinds.
Margin expansion was a key driver of the EBITDA improvement. The company reported trading margins above 60%, reflecting both operational efficiency gains and disciplined inventory management. The removal of unprofitable volume has lifted margins across the business, a dynamic that often signals improved unit economics and operational leverage. For a fashion retailer, achieving this margin profile while growing customer numbers is notable.
Customer metrics paint a picture of brand momentum returning. Active customers reached a record 517,000, while Net Promoter Score improved to 76, now the company’s strongest in years. Australian online traffic grew 12.6% during the year, suggesting improving demand for the brand’s core offering. These leading indicators align with management’s assertion that the strategy of putting customers first and delivering specialized fit for curvy women continues to resonate in the market.
The company acknowledged that current financial performance remains below what it considers acceptable returns to shareholders, yet highlighted that underlying economics are moving in the right direction. Management noted that profitability improvement has continued into the first half of FY27, suggesting momentum is not just FY26-specific. The presence of 71 stores across Australia and New Zealand, combined with a strengthening online presence spanning multiple geographies, provides a distribution platform to capitalize on renewed brand engagement.
The standout risk remains USA tariff uncertainty and its impact on inventory strategy. While the company managed this thoughtfully in FY26 by reducing purchases and protecting profitability, a prolonged tariff environment could constrain growth in that market. Investors should track whether the company’s USA business can return to growth while maintaining the margin gains achieved this year, and whether the improved NPS and customer engagement can translate into higher spending per customer in coming quarters.
View the full ASX announcement (PDF)
About City Chic Collective Limited (ASX: CCX)
City Chic Collective Limited is a plus-size women’s fashion retailer offering apparel, footwear, and accessories under the City Chic brand. The company operates in Australia, New Zealand, and the United States through retail stores, online platforms, and wholesale channels. It was incorporated in 1992 and is headquartered in Alexandria, Australia.
If you would like to discuss this announcement, request a callback or call us on 1300 889 603.
