For the full year ended on June 28, 2026, group sales revenue reached A$130.5 million (~$93.54 million, as per conversion rate of $1 = A$1.3952 as on August 24, 2026), while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) surged 92 per cent to A$12.3 million (~$8.82 million) compared to the prior year.
City Chic Collective’s FY26 underlying EBITDA rose 92 per cent to A$12.3 million, while trading margin reached 60.6 per cent.
ANZ revenue grew 7.6 per cent, but US sales fell as tariff uncertainty prompted lower purchasing and pressured partner sales.
FY27 starts with stronger ANZ stores and improving US momentum, backed by lower costs, leaner inventory and undrawn debt capacity.
The company also expanded its trading margin by 2.1 percentage points to 60.6 per cent and reduced its underlying cost of doing business by A$7.1 million (~$5.09 million). Inventory was tightly managed, falling 11 per cent to A$24.1 million (~$17.27 million), and the group ended the year with a net cash position of A$5.2 million (~$3.73 million), with its A$10 million (~$7.17 million) debt facility undrawn and extended to March 2028, according to the company’s FY26 results announcement.
“FY26 marks another significant step forward in our transformation, with underlying EBITDA increasing 92 per cent to A$12.3 million (~$8.82 million) despite ongoing volatility in the retail environment. We have continued to expand margins, reduce costs and strengthen the quality of our earnings, demonstrating the benefits of the strategic actions we have taken over the past two years,” said Phil Ryan, chief executive officer and managing director, City Chic Collective Limited.
ANZ drives growth as US reset impacts revenue
In Australia and New Zealand (ANZ), revenue increased 7.6 per cent to A$113.8 million (~$81.57 million), supported by growth across both stores and online, higher average selling prices and continued customer acquisition. Comparable sales in ANZ rose 5.6 per cent.
The company reported a record 517,000 active customers and improved its Net Promoter Score (NPS) to 76.
In the US, revenue declined to A$16.7 million (~$11.97 million) as City Chic deliberately reduced purchasing during a period of tariff-related uncertainty, particularly impacting partner sales.
The group transitioned its Amazon business from wholesale to a marketplace model, which is expected to improve profitability over time. With fresh inventory now back in the US market, early customer response has been encouraging as the company enters FY27.
Margin expansion and cost discipline support profitability
City Chic increased its group trading margin to 60.6 per cent, driven by improved product assortments, strong intake cost management, reduced promotional activity and higher average selling prices.
Underlying cost of doing business was reduced to A$66.1 million (~$47.38 million), with marketing costs down 24 per cent and employee costs reduced by 5.5 per cent despite wage inflation.
Inventory management remained disciplined, with a reduction in both value and risk exposure, especially in the US.
FY27 outlook: Strong start and focus on growth
The company reported that momentum has continued into the first seven weeks of FY27, with ANZ store comparable sales up 11.4 per cent and ongoing gross margin expansion.
Online sales in ANZ declined 8 per cent, reflecting a deliberate reduction in promotional activity.
In the US, revenue momentum has improved, with a return to growth in both revenue and margin expected in the first half (excluding wholesale).
City Chic enters FY27 with record customer numbers, a stronger margin profile, a lower cost base and a more resilient balance sheet.
The group remains focused on unlocking customer spend in ANZ through product evolution and targeted acquisition, while in the US, the operational reset is complete and management is prioritising growth in key dress categories and community engagement.
Despite challenging retail trading conditions, City Chic said it is well positioned to grow sales and drive sustained improvement in profitability.
Fibre2Fashion News Desk (MS)
