FY26: City Chic Offsets US Slowdown with Earnings Bump

City Chic Collective has delivered a huge improvement in FY26, with the womens fashion retailer reporting stronger margins, lower operating costs and continued momentum in its ANZ business.

The ASX-listed retailer reported global sales revenue of $130.5m for the year ended 28 June 2026, while Underlying EBITDA increased 92 percent to $12.3m. Trading Margin rose 2.1 percentage points to 60.6 percent, and Underlying Cost of Doing Business fell $7.1m from FY25.

The improvement comes as City Chic continues a two-year transformation focused on simplifying the business, improving product and fit, expanding margins and tightening costs.

“FY26 marks another significant step forward in our transformation,” said Phil Ryan, Chief Executive Officer and Managing Director.

“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.”

ANZ revenue increased 7.6 percent to $113.8m, with comparable sales up 5.6 percent across stores and online. Growth was supported by higher average selling prices, customer acquisition and improvements in product and execution.

City Chic now has a record 517,000 active customers, while its Net Promoter Score improved to 76, indicating stronger customer advocacy.

The USA remained the weaker part of the business, with revenue declining to $16.7m as City Chic deliberately reduced purchasing amid tariff-related uncertainty. The decision particularly affected Partner sales, which are more dependent on new product launches.

Ryan said the decision was designed to protect profitability rather than chase sales in an uncertain environment.

“As previously advised, in the USA we made the deliberate decision to reduce purchasing during a period of tariff-related uncertainty. While this impacted reported revenue, it materially reduced risk and protected profitability. We now have fresh inventory back in market and Her response to our Dress collection has been encouraging. We are confident our USA business, in line with our revised strategy, well positioned for growth in FY27.”

Inventory also fell 11 percent to $24.1m, reflecting tighter purchasing and lower inventory investment in the USA following months of tariff disruption. The retailer said the result leaves it with a “fresh and optimised inventory profile” heading into FY27.

City Chic also transitioned its Amazon business from wholesale to a marketplace model, which it expects to improve profitability over time.

In FY27, the company plans to drive further ANZ growth by evolving its product assortment, expanding its value offer, increasing customer frequency and pursuing targeted customer acquisition. In the USA, the operational reset is complete, with management turning its attention to deeper inventory in key dress categories, community engagement and disciplined inventory investment.

“We have built a simpler, more profitable and more resilient business. While there is still more work to do, we believe we have established a strong foundation for sustainable long-term growth,” said Ryan.