Key Highlights

  • Global sales Revenue reached $130.5 million, with ANZ revenue up 7.6% and comparable sales up 5.6%
  • Underlying EBITDA rose 92% to $12.3 million, with Trading Margin up 2.1 percentage points to 60.6%
  • USA revenue declined to $16.7 million, reflecting a deliberate reduction in purchasing amid tariff-related uncertainty
  • The company ended FY26 with a net cash position of $5.2 million and a fully undrawn $10 million Debt facility

City Chic Collective Limited (ASX:CCX) shares rose 6.98% to $0.046 on 24 August 2026 as the plus-size apparel retailer released its results for the 52 weeks ended 28 June 2026 (FY26). The results showed a substantial increase in underlying Earnings alongside a decline in revenue from its US operations.

Earnings and Margin Growth

City Chic reported global sales revenue of $130.5 million for FY26. Underlying EBITDA increased 92% to $12.3 million, which the company attributed to continued execution of its growth strategy, including margin expansion and disciplined cost management. Trading Margin increased 2.1 percentage points to 60.6%, supported by improved product assortments, intake cost management, reduced promotional activity and higher average selling prices. Underlying Cost of Doing Business fell $7.1 million to $66.1 million despite inflationary pressures, with Marketing costs down 24% and employee costs down 5.5%.

ANZ Growth Versus USA Decline

ANZ revenue increased 7.6% to $113.8 million, with comparable sales growth of 5.6%, supported by growth in both stores and online channels, higher average selling prices and continued customer acquisition. The company reported a record 517,000 active customers in the region and a Net Promoter Score of 76. In contrast, USA revenue declined to $16.7 million, which the company said reflected a deliberate reduction in purchasing activity in response to tariff-related uncertainty. This reduction had its greatest impact on Partner sales, which are more dependent on new product launches. The company also transitioned its Amazon business from a wholesale to a marketplace model during the year, a change expected to improve profitability over time.

Inventory and Balance Sheet Management

Inventory was reduced 11% to $24.1 million, which the company described as reflecting disciplined purchasing and lower inventory Investment in the US market. City Chic ended FY26 with a net cash position of $5.2 million, having repaid all borrowings during the year and leaving its $10 million debt Facility fully undrawn. The facility was extended to 31 March 2028, with the first FY27 clean-down requirement already satisfied.

Trading Update and FY27 Outlook

In the first seven weeks of FY27, ANZ comparable store sales growth remained at 11.4%, and gross margin expansion continued. Online sales were down 8%, which the company said reflected a deliberate reduction in promotional activity. USA revenue momentum was reported to have improved, with a return to growth in revenue and margin expected in the first half of FY27, excluding wholesale. Management said early signs of improved US retail momentum have followed recent changes to income tax rates on tips and overtime in that market.

Conclusion

City Chic's FY26 result reflects a business prioritising margin quality and balance sheet discipline over top-line growth, particularly in its US operations, where a deliberate reduction in purchasing weighed on revenue but was framed by management as a risk-reduction measure amid Tariff uncertainty. The scale of the underlying EBITDA improvement, combined with a net cash position and an undrawn debt facility, suggests the cost and inventory actions taken over the past two years have altered the company's earnings profile, though the USA segment's return to growth in FY27 remains a Factor to watch given its still-declining revenue base in FY26.