City Chic Collective (CCX) H2 2025 earnings summary

Executive summary

• Achieved a $15 million EBITDA turnaround in FY 2025, moving from an $8.5 million loss to a $6.5 million profit, representing a 176% year-over-year increase, driven by strategic execution and cost reduction.

• Strong sales momentum in Australia and New Zealand (ANZ), with full-year sales up 8.3% and second half up 15.2%, and comp store sales up 8.4%.

• Online sales increased 10.9% year-over-year, with H2 up 17.8%.

• USA business returned to profitability, with City Chic product sales up 25% year-over-year.

• Cost-out initiatives delivered $22.3 million in savings, with further reductions planned for FY 2026.

Financial highlights

• Revenue reached $134.7 million, up 2.3% year-over-year.

• Trading gross margin improved by 350 basis points to 59.7%, approaching the 62% target.

• Underlying EBITDA was $6.4 million, a turnaround from an $8.4 million loss in FY24.

• Cost-out initiatives delivered $22.3 million in savings, with an additional $1 million targeted for FY 2026.

• Wages reduced by 16.5%, saving $5.7 million.

Outlook and guidance

• Expecting to be operating cash flow positive in FY 2026, with positive momentum in the first half.

• ANZ sales up 8.7% in the first eight weeks of FY 2026; online slightly outpacing stores.

• Six to eight net new stores planned for FY 2026, with four already secured and expansion to 120 stores over five years.

• Continued focus on revenue growth through new stores, store-to-door program, and marketplace partnerships.

• Further $1 million in fixed cost reductions and $0.7 million in annualized cost savings targeted for FY 2026.