City Chic Collective (CCX) H2 2025 earnings summary

Executive summary

• Achieved a $15 million EBITDA turnaround in FY25, moving from an $8.5 million loss to a $6.5 million profit, with underlying EBITDA up 176% year-over-year, driven by strategic execution and cost reduction.

• Global sales revenue reached $134.7 million, up 2.3% year-over-year, with strong second-half momentum in ANZ (full-year sales up 8.3%, 2H up 15.2%).

• USA business returned to profitability, with City Chic branded product sales up 25%-25.6% year-over-year, despite a decline in total USA revenue.

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

• Cost-out initiatives delivered $22.3 million in savings, with further reductions planned for FY26.

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 of doing business reduced by 14% to $73.2 million, with labor costs down 16.5% and other expenses down nearly 29%.

• Cash balance at year-end was $8 million, with $5 million undrawn on the bank facility.

Outlook and guidance

• First 8 weeks of FY26 ahead of expectations: ANZ revenue up 8.7% year-over-year, USA remains profitable.

• Six to eight net new stores planned for FY26, with four already secured and a five-year target of 120 stores.

• 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 FY26.

• Business on track to be operating cash flow positive in FY26.