City Chic Collective reported a 92% rise in underlying EBITDA to A$12.3 million in the year ended June 30, 2026, as the fashion retailer’s turnaround strategy accelerated. The result came as global sales fell 3.1% to A$130.5 million, though Australia and New Zealand revenue climbed 7.6% and comparable store sales rose 5.6%. The company’s net cash position improved to A$5.2 million, while operating cash flow turned positive at A$2.2 million.
The group’s U.S. operations weighed on overall performance, with revenue down 42.1% as it exited Amazon’s wholesale channel. In contrast, ANZ revenue growth was supported by a 7.0% rise in store traffic and an 8.2% increase in trading margin dollars. Inventory was reduced 11% to A$24.1 million, and the active customer base grew 3.0% to a record 517,000. Trading gross margin expanded 209 basis points to 60.6%, driven by a 4.5% lift in average selling prices.
Cost discipline contributed to the earnings improvement, with total cost of doing business falling A$7.1 million to 51.7% of sales. Marketing expenses declined 24.1%, employee benefits dropped 5.5%, and other operating expenses fell more than 20%. The statutory net loss after tax narrowed 25.5% to A$6.6 million, while the underlying EBITDA margin doubled to 9.4%.
City Chic also extended its debt facility through March 2028 and repaid A$5.0 million in borrowings during the period. The group is optimizing its 72-store network, having closed four loss-making locations in early FY27 while opening one new store. Early trading in the first seven weeks of FY27 showed ANZ comparable store sales up 11.4%, with store traffic rising 14% despite an 8% decline in online sales due to reduced promotions.
Management highlighted the company’s ‘Cut for Curves’ fit promise and digital-first marketing as key differentiators. The presentation noted a shift in size distribution, with sizes 10–12 doubling to 8% of sales, while larger sizes 18–20 declined from 42% to 39%. The group also cited data on GLP-1 weight-loss medication adoption in the U.S., where 21% of households include a user and 73% experience meaningful clothing size changes, supporting apparel spending increases of 9.9% after 6–8 months on medication.
