Key Highlights

  • Group revenue, excluding wholesale, fell 1.7% over the 18 weeks to 1 November 2026.
  • Gross Margin dollars rose 2.2%, while full-price store sales in ANZ increased 19.6%.
  • The company expects positive EBIT in the first half of FY27, subject to sales through Black Friday and Christmas.
  • City Chic expects to end the first half with a positive cash balance and no drawn debt.

City Chic Collective Limited (ASX:CCX) has issued a trading update covering the 18 weeks to 1 November 2026, in an announcement dated 4 November 2026. The figures are preliminary and unaudited, and they reflect the company's decision in August to reduce promotional activity, particularly online, as part of a strategic reset.

Revenue and Margin Movements

Group revenue, excluding wholesale, was down 1.7% on the prior corresponding period, while gross margin dollars increased 2.2%. Group trading gross margin rose 240 basis points, and group comparable sales increased 1.2%. The company links the margin gains to a higher full-price sales mix.

In ANZ, comparable store sales rose 15.4%, with full-price stores up 19.6%. The company says the Spring season was supported by reduced discounting and a reshaped price point mix.

The company describes the first-half trading as shaped by the planned change in promotional cadence adopted in August. That change allowed the Business to enter the Spring season with reduced discounting and a reshaped price point mix, which the release describes as aimed at delivering value in the current retail environment.

Regional Performance

ANZ online comparable sales fell 7.4%, and online trading gross margin dollars declined 4.5%, although the online gross margin rate increased by 200 basis points. The company attributes the decline in dollar terms to the strategic reset.

In the USA, comparable sales declined 12.0% as the business reduced discounting. Comparable trading gross margin dollars nevertheless increased 7.1%, which the company presents as evidence that the margin focus is working in that market.

The contrast between regions is central to the update. ANZ store sales rose while ANZ online sales fell, and the US business reduced discounting, which lowered comparable sales but lifted margin dollars. Taken together, the figures show a shift in the mix of Revenue and margin across the group.

Outlook and Liquidity

City Chic expects to generate positive EBIT in the first half of FY27, provided sales momentum continues into Black Friday and the Christmas trading period. The company also expects to end the half with a positive cash balance and no drawn debt.

The update does not provide a full-year profit forecast, and the first-half EBIT outlook depends on trading conditions over the holiday period.

The positive cash balance and the absence of drawn Debt are expected at the half-year end on the basis of trading to date. The announcement does not provide Cash Flow figures or a full-year Earnings outlook, and the first-half EBIT expectation depends on sales in the holiday period.

Measures Used in the Update

The update uses several measures that readers may not encounter in other reports. Comparable sales measure sales from stores or channels open in both periods, while trading gross margin dollars and basis point changes measure margin after discounts and costs of goods. Group revenue excludes wholesale in the headline figure, which is why it is presented separately from the comparable store sales. The measures are preliminary and cover 18 weeks rather than the full half-year.

Final Word

The update combines higher store sales and gross margin rates with lower online and US sales and a modest decline in group revenue. The first-half EBIT outlook rests on holiday trading that has not yet occurred, and the preliminary figures have not been audited. Readers can compare these results with the company's full half-year report when it is released.