Australia's City Chic reports strong ANZ gains, US sales fall

The result was driven by strong performance in Australia and New Zealand (ANZ), which grew 17 per cent with comparable sales up 21 per cent across all channels. In contrast, the US saw a decline of 13 per cent year-over-year (YoY). The group online traffic rose by 23 per cent, while gross margin remained in line with expectations.

The ANZ business remains on track to operate 78 stores by the end of FY25, including the newly opened contemporary-format store in Wetherill Park, which has received highly positive customer feedback. The growth has been lower than planned, with the expected uplift from the recent interest rate cut and improved consumer sentiment yet to materialise to the extent the group anticipated, City Chic Collective said in a press release.

At the H1 FY25 results announcement, the group revised its full-year guidance to revenue between $137 million and $147 million, with EBITDA projected between $8 million and $12 million.

Given ongoing volatility in the US market and trading conditions in the first 18 weeks of 2H FY25, City Chic is now aiming for the lower end of these ranges. However, continued uncertainty may cause actual results to fall short. Management remains focused on executing its strategy, driving sales, safeguarding margins, and implementing the cost reduction programme to strengthen the business for long-term growth, added the release.

ALCHEMPro News Desk (SG)