City Chic Collective Forecasts Sharp FY26 EBITDA Growth

City Chic Collective (ASX: CCX) expects underlying EBITDA of between $11.5 million and $12.5m for FY26, representing growth of 80% to 95%.

Preliminary unaudited global sales revenue for the 52 weeks to 28 June 2026 declined 3.1% to $130.5m but increased 1.8% after excluding the closed wholesale business.

Australia and New Zealand (ANZ) revenue grew 7.6% to $113.8m, offsetting weaker performance in the US following tariff-related inventory controls and the closure of the Amazon wholesale operation.

Trading margin increased 2.1 percentage points to 60.6%, while the customer base grew 3% to 517,000 and closing inventory declined 11.4% to $24.1m.

ANZ Drives Revenue Growth

ANZ growth was supported by stronger sales across both stores and online channels despite weak consumer confidence, further interest rate increases, and higher fuel prices.

Group store revenue increased 9.5% to $61.9m, while total online revenue declined 2.7% to $59.6m due to weaker US trading.

Online revenue within ANZ increased 5.4%, complementing the growth delivered through the retailer’s physical store network.

Marketplace revenue fell 17.2% to $7.1m and wholesale revenue declined 76.5% to $2m following the reduction in US inventory purchases and the Amazon wholesale closure, which it plans to transition toward a marketplace model that provides greater control over product assortment and pricing.

The group finished the year with $5.2m in cash and no drawn debt against its $10m facility, which remains available until 31 March 2028.

Renewed US Momentum

Reported US revenue declined 42.2% to $16.7m, while revenue excluding wholesale fell 28.1% across online and marketplace channels following a deliberate temporary cut to inventory purchasing as City Chic responded to volatility surrounding US tariffs.

Purchasing has since returned to normal levels, with the retailer recording an encouraging customer response to its summer range and improving sales momentum entering FY27.

Chief executive officer Phil Ryan said the company believes improvements to its products and service are resonating with its customers.

“We continue to build a more resilient and profitable business, characterised by a stronger margin profile, a lower cost base, and disciplined inventory management,” Mr Ryan said.

“Maintaining our strategic focus on product and customer experience, we are confident in our ability to continue to grow sales and deliver sustainable profitability over time.”