City Chic shares rally after projecting up to 95% earnings growth in FY26
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The news: Shares in City Chic Collective rocketed in afternoon trade after the plus-size apparel retailer forecast an unaudited underlying EBITDA of between $11.5 million and $12.5 million for the 52 weeks to 28 June.
Shares jumped 20.3% to 0.06 cents at 1:17pm AEST.
The context: The upgraded underlying EBITDA forecast represents a massive 80% to 95% year-on-year surge, fuelled by continued margin expansion and disciplined cost management despite persistent macroeconomic headwinds.
However, the group recorded a 3.1% year-on-year decline in FY26 revenue primarily attributed to the closure of its Amazon wholesale business coupled with a 28.1% slump in US sales resulting from a tariff-related reduction in inventory purchases.
The group’s cost of doing business fell 7.5% year-on-year driven by marketing and labour efficiencies. Inventory levels remain tightly managed, closing at $24.1 million down from $27.2 million in the previous period.
City Chic ended the financial year generating $5.2 million in net cash with no drawn debt against its $10 million capital facility, which remains in place until 31 March 2028.
What they said: “We continue to build more resilient and profitable business, characterised by a stronger margin profile, a lower cost base and disciplined inventory management,” City Chic CEO Phil Ryan said.
“Maintaining our strategic focus on product and customer experience, we are confidence in our ability to continue to grow sales and deliver sustainable probability over time,” he added.
The source: ASX
