City Chic Collective Delivers Up to 95% Earnings Growth as Margins Surge in FY26
City Chic returns to strong earnings growth with FY26 underlying EBITDA up to 95%
City Chic Collective (ASX: CCX) has flagged a preliminary, unaudited Underlying EBITDA of $11.5m to $12.5m for the 52 weeks to 28 June 2026 (FY26), representing growth of 80% to 95%. The result points to a margin-driven earnings turnaround for the plus-size women’s apparel omni-channel retailer, despite softer top-line sales.
Global sales revenue landed at $130.5m, down 3.1% on FY25, but up 1.8% excluding the closed Wholesale business. The figures are preliminary and unaudited, with audited FY26 results due on 24 August 2026.
The uplift reflects continued margin expansion and disciplined cost management across the business, achieved against a backdrop of ongoing market volatility and persistent macroeconomic headwinds.
When big ASX news breaks, our subscribers know first
FY26 result at a glance
The table below summarises the key preliminary and unaudited metrics reported for the period.
| Metric | FY26 | FY25 | Change |
|---|---|---|---|
| Underlying EBITDA | $11.5m–$12.5m | — | +80%–95% |
| Global revenue | $130.5m | $134.7m | -3.1% |
| Trading Margin | 60.6% | 58.5% | +2.1pts |
| Total Customers | 517k | — | +3.0% |
| Inventory | $24.1m | $27.2m | -11.4% |
Supporting highlights from the update include:
-
Cost of Doing Business down approximately 7.5% year-on-year.
-
Cash balance of $5.2m with an undrawn $10m debt facility, in place until 31 March 2028.
-
ANZ sales growth of 7.6%.
Note: Underlying EBITDA (post AASB 16) is for continued operations and excludes non-recurring restructuring costs of $0.2m. The FY25 comparative excluded $1.2m relating to a Northern Hemisphere warehouse relocation and transaction costs.
What drove the numbers, margins up, costs down, ANZ strong
ANZ powers ahead
The ANZ segment delivered revenue growth of 7.6% to $113.8m, driven by gains across both physical and digital channels. Stores revenue rose 9.5%, while Online revenue increased 5.4%.
Management noted this growth occurred against what it described as record low consumer confidence in Australia, following further interest rate increases and higher fuel prices during the second half.
USA deliberately reset
USA revenue declined 42.2% as reported, or 28.1% excluding the closed Wholesale business. The company attributed this to a deliberate decision to temporarily reduce inventory purchases in response to tariff-related volatility, rather than a collapse in underlying demand.
Lower intake of fresh inventory had the greatest impact on Partner sales, given their reliance on new product launches. With purchasing activity now returned to normal levels, the USA is seeing an encouraging customer response to its Summer product range and improving sales momentum as it enters FY27.
Margin and cost discipline
Trading Margin, defined as product margin before accounting and other adjustments, increased to 60.6% from 58.5% in FY25. The improvement reflected a better product mix and reduced promotional activity.
Cost of Doing Business decreased by approximately 7.5% year-on-year, driven primarily by operational marketing and labour efficiencies. Ongoing cost-out initiatives have largely offset persistent inflationary pressures.
CEO Commentary
“The disciplined execution of our strategy has delivered a materially stronger earnings result this year, reflecting ongoing margin improvement and strong cost management across the business.”
“Against this challenging backdrop, the team has remained focused on executing our strategy and meeting our customer where she is. This has become our motto as we continue to navigate this environment with her,” said Phil Ryan, Chief Executive Officer and Managing Director.
Understanding a trading update
A preliminary trading update is an early snapshot of a company’s performance issued ahead of its audited results. Companies release these updates to keep the market informed once management has visibility on key figures, though the numbers remain subject to formal audit and may be refined before final publication.
Earnings growth can outpace, or in this case run counter to, revenue trends when margin expansion and cost reductions do more of the heavy lifting than sales volume. A net cash position and lean inventory also matter to investors in a volatile retail environment, as they reduce financial risk and lower the chance of margin-eroding discounting to clear excess stock.
Balance sheet strength and the road to FY27
City Chic ended the period in a net cash position, holding $5.2m in cash with no drawn debt against its $10m facility, which remains available until 31 March 2028. The first clean-down requirement for FY27 has already been completed.
Inventory was tightly managed, closing at $24.1m, down 11.4% from $27.2m and in line with expectations.
The Wholesale business with Amazon has been closed. Over time, the company plans to transition this business to a marketplace model, where it expects greater control and flexibility over assortment and pricing. Looking ahead, forward markers include improving USA momentum into FY27 and continued ANZ growth across both store and online channels.
The next major ASX story will hit our subscribers first
What comes next
City Chic will announce its audited FY26 results for the 52 weeks to 28 June 2026 on Monday 24 August 2026. A webcast and conference call for analysts and investors, hosted by Phil Ryan and Chief Financial Officer James Plummer, is scheduled for the same day.
Key dates and next steps for investors to note:
-
Audited FY26 results, 24 August 2026 at 9.30am AEST.
-
Investor and analyst webcast, held the same day, with pre-registration now open.
-
USA marketplace transition and FY27 momentum to monitor over the coming periods.
The preliminary update points to a leaner, higher-margin business operating from a net cash position. Management has stated it remains confident in its ability to continue growing sales and delivering sustainable profitability over time, though the FY26 figures remain preliminary and unaudited pending the release of the full-year results.
Don’t Miss the Next Consumer Discretionary Turnaround
Get FREE breaking ASX consumer sector news delivered to your inbox within minutes of release, complete with in-depth analysis. Join 20,000+ subscribers already staying ahead of the market. Click the “Free Alerts” button at Big News Blast to receive real-time alerts the moment market-moving announcements hit the ASX.