City Chic reports revenue hit amid US tariff volatility
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The news: Plus-size women's apparel retailer City Chic Collective has reported a 0.5% decline in group sales revenue for the first half of FY26 to $69.2 million, compared with the prior corresponding period, driven by weaker sales in the Americas.
The numbers: City Chic's ANZ revenue rose 7.4% to $59.4 million, while revenue in the Americas fell 31.4% to $9.7 million in the first half of FY26.
By channel, online revenue increased 3.6% to $36.3 million, while revenue from partner channels declined 29.9% to $5.7 million. Total group sales revenue was 0.5% lower at $69.2 million.
The company's underlying earnings before interest, tax, depreciation and amortisation were between $6 million and $7 million, a 71% to 100% increase compared with the previous period. These first half figures are preliminary and unaudited.
The context: City Chic said the sharp decline in Americas revenue reflected a deliberate reduction in purchasing in response to tariff-related volatility. The reduction in fresh inventory had the greatest impact on partner sales, which are more reliant on new product launches. Despite this, the company said it remains on track to be operating cash flow positive in FY26.
City Chic's half-year FY26 results for the 26 weeks to December 2025 are scheduled to be released on 24 February.
What they said: "Our USA business remained profitable and exceeded sales expectations, despite a deliberate reduction in inventory in response to tariff-related volatility. The resilience of the US consumer has been a welcome surprise, and we're encouraged by the underlying strength of our direct-to-consumer channels," City Chic Collective managing director Phil Ryan said.
"As a result, summer 2026 inventory has been ordered to support a return to higher sales levels in 2H FY26."
The source: ASX
