City Chic Collective Ltd (ASX: CCX) has released its FY26 first-half results for the 6 months ended 28 December 2025 today.
In early morning trade, the City Chic share price is up 4.55% to 11.5 cents. Even with today's gain, the stock remains down about 12% over the past month.
Let's take a closer look at what the company reported.
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Earnings rise as revenue holds steady
City Chic reported total revenue of $69.2 million for the half. This was down 0.4% compared with the prior corresponding period.
While sales were slightly lower, profitability improved. Underlying EBITDA came in at $6.5 million, up 86% on the prior period. The result reflects tighter cost control and improved gross margins.
Trading gross margin increased by 220 basis points to 62.2%. The company said this was supported by better product mix and more disciplined promotional activity.
Statutory net profit after tax (NPAT) remained a loss at $3.5 million. However, this was an improvement on the previous year.
Active customers across the group totalled about 503,000, broadly steady compared with the prior period.
ANZ grows while US sales fall
Performance differed across City Chic's regions.
In Australia and New Zealand, revenue rose 7.4% compared with the prior period. The company pointed to stronger full-price sales and disciplined trading through key promotional periods.
In the United States, revenue fell 31.7%. Management said this was due to a deliberate reduction in inventory in response to tariff-related uncertainty and a focus on improving long-term profitability. Lower fresh inventory had the biggest impact on partner sales, which depend on new product launches.
Overall inventory was down almost 10% compared with June 2025 and more than 20% compared with the prior period.
Online sales were stable, while partner sales were weaker due to the inventory strategy.
Cash position improves
City Chic ended the half with net cash of $5.4 million. This was up 84% from June 2025.
During the period, the company repaid $5 million in borrowings. A $10 million debt facility remains in place and undrawn. The facility has been extended to 31 March 2028.
The board did not declare a dividend for the half. The company said it remains focused on restoring sustainable and profitable growth.
Early positive signs from the second half
The company also provided an update on recent trading.
In the first 8 weeks of the second half, ANZ revenue was up 9% compared with the prior period. Gross margin dollars in ANZ increased 17% over the same timeframe.
In the United States, new product has been ordered ahead of a planned fourth-quarter relaunch. The company is also expanding its marketplace presence and adjusting its operating model to support long-term profitability.
City Chic said it remains focused on disciplined cost management, inventory control, and improving margins as it works to deliver sustainable earnings growth.
