City Chic Collective (CCX) H1 2026 earnings summary

Executive summary

• Underlying EBITDA rose 86% year-over-year to $6.5 million, driven by disciplined execution, cost control, and strategic focus on customer and product quality.

• ANZ revenue increased 7.4% year-over-year, while the USA remained profitable despite a 31% revenue decline due to deliberate inventory reduction.

• Net cash position improved to $5.4 million, with a $10 million undrawn debt facility extended to March 2028.

• Inventory reduced by 21% year-over-year, reflecting tighter management and focus on reinvestment in key markets.

• No dividends paid, recommended, or declared during the current or previous period.

Financial highlights

• Revenue for the half was $69.2 million, nearly flat year-over-year, with ANZ up 7.4% and USA down 31%.

• Trading gross margin increased to 62.2%, up 220 basis points year-over-year, exceeding the 62% target.

• Operating cash flow was $10.1 million, a significant improvement from negative $8.9 million prior period.

• Cost of doing business fell to 51%, down from 54% in the prior period.

• Net loss after tax from continuing operations reduced by 48% to $3.5 million.

Outlook and guidance

• ANZ trading gross margin dollars up 17% and revenue up 9% in the first eight weeks of 2H FY26.

• USA inventory investment for summer 2026 expected to drive improved performance; Q4 relaunch and new marketplace initiatives underway.

• Monitoring tariff developments, with a potential 5% reduction in duty for goods entering the USA from China.

• Net operating cash flow is forecasted to remain positive, with the $10 million debt facility fully available and extended to March 2028.

• Management remains cautious due to macroeconomic pressures and softer consumer sentiment.