City Chic Collective has delivered a materially stronger earnings result for FY26, with underlying EBITDA forecast to reach $11.5 million to $12.5 million, representing an 80 to 95 percent increase on the prior year. This substantial earnings improvement reflects the company’s disciplined execution of its strategy, particularly through margin expansion and rigorous cost management, despite facing ongoing macroeconomic headwinds and market volatility.
The revenue picture presents a more nuanced story. Global sales declined 3.1 percent to $130.5 million, though this decline largely reflects the company’s deliberate decision to reduce USA inventory purchases in response to tariff-related volatility, which resulted in a 28.1 percent fall in USA sales for the period. Excluding the closed Wholesale business, group revenue was essentially flat, up 1.8 percent. More positively, the ANZ region delivered robust growth of 7.6 percent across both store and online channels, demonstrating underlying demand strength in the company’s core market. Management has noted that USA purchasing activity has now returned to normal levels, with early indicators suggesting encouraging customer response to the Summer product range and improving sales momentum heading into FY27.
The operational highlights reveal where the real value is being created. Trading margin expanded 210 basis points to 60.6 percent, driven by improved product mix and reduced promotional activity. Cost of doing business decreased approximately 7.5 percent year-on-year, with efficiency gains in operational marketing and labour offsetting persistent inflationary pressures. The company’s disciplined approach to inventory management is evident in the 11.4 percent reduction to $24.1 million, demonstrating improved capital efficiency and reduced working capital requirements.
From a balance sheet perspective, City Chic remains well-positioned. The company closed the period with $5.2 million in cash and no drawn debt against its $10 million facility, which extends through March 2028. The early completion of the FY27 clean-down requirement provides additional confidence in the debt covenant position. This net cash position provides flexibility for investment in growth initiatives or shareholder returns.
The customer base expansion of 3.0 percent to 517,000 customers, combined with positive feedback and satisfaction scores, suggests the company’s product and service improvements are resonating with its target market. Looking ahead, investors should monitor USA sales momentum as purchasing activity normalizes, the sustainability of ANZ growth trends given current consumer confidence challenges, and the company’s ability to maintain margin expansion while investing in growth. The full FY26 results will provide greater clarity on these drivers and management’s FY27 guidance. This announcement is price sensitive and has been flagged as material by the ASX.
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.
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