City Chic shares tank as revenue slides

The news: Plus-size fashion retailer City Chic Collective has lifted gross margins in the first 20 weeks of the fiscal year and forecast an improvement in trading conditions in the second half.

The numbers: The retailer said its revised strategy had delivered an 11% increase in gross margin dollars in the first 20 weeks of FY25, with trading margin above 62% and average selling price up 32%. Revenue is down 4.8% from a year ago, but has picked up pace compared to the first eight weeks of FY25.

The context: City Chic CEO Phil Ryan told shareholders ahead of the company’s annual general meeting that margins were largely flat in the key US market, with September and October below expectations. However, demand has rebounded in November, while momentum has also continued in the Australia and New Zealand market.

What they said: “With a recovery into the second half, especially in the USA, the revenue is expected to be greater than the first. This will be driven by continued momentum in our Australian business and a seasonal uplift, with an assumed improvement in the economic environment in the US,” he said.