City Chic shares drop on lowered US sales expecations
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More news: City Chic shares fell in early trading after the company flagged that it expected a reduction in US sales expectations due to tariff uncertainty and associated volatility.
Shares were down 2.38% to 8 cents at 10:55am AEST and over the last 12 months have lost over 74%.
City Chic moves stock on tariff uncertainty
The news: City Chic Collective has flagged that it has brought a large portion of its current and future range of product into the US ahead of tariff changes and US sales expectations have been lowered for FY26 .
The numbers: About 20% of the group’s revenue is generated in the US and over 90% of its products are sourced from China.
City Chic said it had brought the bulk of its summer 2025 range and a large portion of its winter 2026 product into the US ahead of the 145% average duty rate of 27.5% of the company’s US products. The move will see the company sustain operations through to the second quarter of FY26 and has paused all further stock from entering the US market. Marketing spend has also been reduced.
The group also announced that trading for the first 18 weeks of the second half of FY25 included total growth of 8% compared to the prior corresponding period — ANZ was up 17%, US growth fell 13%, and group online traffic was up 23%.
City Chic also said that it was now targeting the lower end of its FY25 revenue target of between $137 million and $147 million and EBITDA of between $8 million and $12 million. But it flagged that volatility and uncertainty could lead to falling short of their targets.
The context: The group has commenced discussions with suppliers to mitigate further impact of increased tariffs and said it had an option to exit the US with minimal costs if the tariff situation remained uncommercial.
The source: ASX
