City Chic Collective has delivered a transformational earnings result, with underlying EBITDA rocketing 92 percent to $12.3 million in FY26. This marks a dramatic turnaround from the company’s struggles in recent years and validates the strategic repositioning management has executed since the Northern Hemisphere exit. The earnings growth came despite continued volatility in retail markets, suggesting City Chic has successfully moved beyond cyclical headwinds to deliver genuine operational improvement.
The ANZ division is driving this momentum, with revenue up 7.6 percent to $113.8 million and comparable sales growth of 5.6 percent. Customer metrics point to a business regaining traction with its core market. The active customer base has reached a record 517,000 and net promoter score improved to 76, indicating strong brand advocacy. These are not vanity metrics for a fashion retailer. Sustained customer acquisition and loyalty typically precede sustained revenue growth, and City Chic’s numbers suggest the worst of its troubles may be behind it.
Management’s handling of the USA business demonstrates disciplined capital allocation. Rather than push inventory through tariff-related disruption, City Chic deliberately reduced purchasing, which protected margins even as it dragged reported revenue down to $16.7 million. The company transitioned its Amazon presence from wholesale to marketplace, a structural improvement that should enhance profitability. Management’s commentary suggests fresh inventory is now back in market and responding well, positioning USA for a recovery in FY27 without the distraction of tariff chaos.
The profitability story extends beyond EBITDA. Trading gross margin expanded to 60.6 percent, up 2.1 percentage points, while the cost of doing business fell $7.1 million. This combination reflects two disciplined management priorities: product mix improvement (higher average selling prices and better fit and quality) and operational efficiency (cost reduction and inventory discipline). Inventory is down 11 percent to $24.1 million, suggesting tighter supply chain execution and lower carrying costs.
City Chic’s balance sheet has also materially strengthened. The company holds a net cash position of $5.2 million with a $10 million debt facility undrawn and extended to March 2028. This financial flexibility removes refinancing risk and provides capacity for investment or returns to shareholders. The early trading data from FY27 is encouraging, with the first seven weeks showing ANZ store comparable sales growth of 11.4 percent, indicating momentum has carried into the new financial year.
Investors should watch whether City Chic can sustain this growth trajectory beyond the first quarter of FY27 and whether the USA recovery gains traction. The integration of AI and technology tools flagged in management commentary could prove a competitive advantage in inventory management and customer targeting. This announcement has been identified as price sensitive and is 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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