City Chic Collective Posts Turnaround Following New Store Concept and Refreshed Product Range
Fashion retailer City Chic Collective (ASX: CCX) has posted global revenue of $134.7 million for financial year 2025, underpinned by supplier collaborations, a new store concept and a refreshed product range.
Revenue for the Australia-New Zealand region increased 8.3% to $105.8m, driven by online sales growth of 10.9% and comparable store sales growth of 8.4%.
The region experienced continued success in the second half of the year, with total online and store sales up 15.2% at improved trading margins.
EBITDA Turnaround
City Chic reported an increased underlying EBITDA result of $6.4m, representing a $14.8m turnaround on a solid loss in the previous year, with inventory for the period down 12% at $27.1m.
This was in line with expectations and positions the group with a fresh product assortment heading into the new year.
The company expects economic conditions in Australia-New Zealand to keep improving, and will be looking to continue growing comparative sales through execution of its product strategy, increased customer frequency and growth of its target customer base through focused advertising.
It also intends to increase sales volumes through the opening of up to eight new stores in the new financial year (growing to 120 stores by 2030) as well as a ‘store to door’ initiative and the onboarding of Myer and US department store chain Belk as retail partners.
Improved US Performance
Revenue from City Chic-branded product in the US grew by 25.6% while total US revenue was down 14.9% to $28.9m.
The group’s partners business had a material impact, with the prior period including the since-divested Avenue brand.
City Chic fully executed cost-out programs of $22.3m, with further annualised savings to flow through in the 2026 financial year.
The company also reduced its cost of doing business from $84.2m in the previous year to $73.2m.
Ongoing Market Volatility
Chief executive officer Phil Ryan was happy with the group’s performance against a backdrop of ongoing market volatility and persistent macroeconomic headwinds.
“Our refreshed product range continues to resonate with high-value target customers, who now represent over half of our active base, driving a 9% lift in trading gross margin dollars and a 14% rise in average selling prices,” he said.
“Our new store concept was rolled out in Sydney this year and has delivered encouraging early results with stronger trading gross margins, an increase in average selling prices and overwhelmingly positive customer feedback.”
He said City Chic had driven “meaningful margin improvement” and tightened its cost base during the year, setting the stage for renewed top-line momentum and putting the company on track to be operating cash flow positive in financial year 2026.