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The Australia and New Zealand operations of plus-size women's clothing retailer City Chic Collective (ASX: CCX) picked up pace in FY26, keeping the company on track for another year of positive cash flow.
City Chic has reported ANZ sales for the 18 weeks to 2 November 2025 are up 10 per cent on the previous corresponding period, with the pace of growth accelerating from the 8.7 per cent reported in August for the first eight weeks of the current financial year.
The US market, led by the resilience of American consumers, is also performing above expectations despite the company planning for lower sales due to tariff uncertainty.
City Chic, which has 76 stores in Australia and New Zealand and has a strong online presence in the US, has reported total revenue growth of 2.6 per cent in the current financial year to date with the ANZ growth offset by a 21 per cent drop in US sales.
“The momentum in our ANZ business has continued to strengthen over the past 10 weeks, validating our strategic focus on our high value customers and the comprehensive improvements we’ve made to our product quality and customer appeal,” says Phil Ryan, the CEO of City Chic.
“Margins are where they need to be, and costs are firmly under control.”
Ryan says the company’s sales performance has been achieved while reducing inventory and improving its working capital position.
City Chic currently has a total cash balance of $9.5 million and an undrawn debt facility of $5 million.
“We have the right inventory level to drive revenue and positive operating cash flows, with new inventory ready in-market for the critical black Friday and Christmas trading periods in ANZ,” says Ryan.
"Our USA business has remained profitable and has exceeded sales expectations despite the strategic reduction in purchasing we implemented in response to tariff-induced volatility.
“The resilience of the US consumer has been a pleasant surprise, and we’re encouraged by the underlying strength of our direct-to-consumer channels.
“The next eight weeks are crucial to the half-year result, and with improved product in market and the sell though achieved to date, we have positioned ourselves well to deliver on our plan.”
Over the past year, City Chic has “comprehensively overhauled” its product development process, with management implementing greater rigour across design and quality control.
While this initially resulted in a slower-than-planned intake of summer product in Australia and New Zealand, the company says it represented a deliberate shift away from the highly competitive lower-price segment toward higher quality and margin product.
City Chic also notes that the summer product that was brought in early to the US has performed ahead of expectations, with stronger sell-through as the season was extended to maximise sales opportunities.
“Due to the tariff-led volatility the group reduced intake of winter product and lowered sales expectations,” says City Chic.
“The group is encouraged by the resilience of its direct-to-consumer channels, with website and marketplace sales down 9.8 per cent, which is better than plan.”
While inventory levels are down in the US, City Chic says planning is well advanced for next northern summer, where the group is taking a cautiously optimistic view of trading conditions and buying inventory to support planned sales levels in the second half of this financial year.
“Management continues to monitor the US trading environment and is encouraged by its increasing stability and the recent positive outlook for trade agreements,” says the company.
City Chic reported underlying EBITDA of $6.4 million for FY25, a $14.8 million turnaround from previous corresponding period.
The company says its current sales performance keeps the business on track to be operating cash flow positive in FY26.
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