City Chic reports swing to positive earnings but misses guidance
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The news: Plus-size fashion retailer City Chic Collective has recorded a swing to positive earnings in fiscal 2025 but missed its full-year guidance, according to unaudited figures released this morning.
The numbers: City Chic reported unaudited underlying earnings of between $6 million and $6.5 million, up from a $8.4 million loss in the previous year. However, the company had recently forecast full-year earnings of between $8 million and $12 million.
Global sales revenue rose 2.3% year-on-year to $134.7 million, below guidance of between $137 million and $147 million. Comparable store sales growth climbed 8.4% while trading margin improved by 3.6 percentage points.
The context: City Chic's chief executive and managing director Phil Ryan said the company saw strong customer numbers and positive online and in-store traffic in Australia and New Zealand during the period.
However, he noted that growth was lower than planned, with the expected uplift from recent interest rate cuts and improving customer sentiment "yet to materialise to the extent anticipated".
Ryan noted that trading in the US remained volatile, with ongoing changes in US foreign trade policy "directly impacting demand".
City Chic will announce its audited results for the year on 28 August.
What they said: "Making these inroads has not been easy, and I believe we are only halfway there on this journey," said Ryan.
"But with our simplified structure and significantly lower cost base, we are well positioned to take advantage of more favourable market conditions when these return."
The source: ASX
