City Chic Collective Reports $8.9M Loss, Revenue Up 2.35% in FY25
City Chic Collective Limited reported a significant reduction in its FY25 net loss alongside modest revenue growth, setting the stage for a potential turnaround in FY26 backed by cost savings and a clean debt facility.
- FY25 net loss from continuing operations narrowed to $8.9 million
- Revenue increased 2.35% to $134.7 million
- Cost savings of $22.3 million delivered through operational efficiencies
- No dividends declared amid ongoing transformation
- Clean $10 million debt facility extended to 2026 supports liquidity
Financial Performance and Strategic Progress
City Chic Collective Limited (ASX – CCX), a global omni-channel retailer specialising in plus-size women's apparel, has reported a marked improvement in its financial results for the year ended 29 June 2025. The company narrowed its net loss from continuing operations to $8.9 million, a significant improvement from the $38.4 million loss recorded in the prior year. This was achieved alongside a 2.35% increase in revenue to $134.7 million, reflecting steady growth in its core branded product lines.
The results underscore the effectiveness of City Chic’s ongoing turnaround strategy, which has focused on operational efficiencies and cost discipline. The Group delivered $22.3 million in cost savings over the past two years, with these savings expected to flow through fully in FY26. Key drivers included improved productivity, reduced labour and fulfilment costs, and tighter inventory management, which saw inventory levels maintained at $27.1 million with a clean and relevant product assortment heading into FY26.
Divestment and Market Focus
Following the divestment of its Avenue business in the US in FY24, City Chic has concentrated on consolidating its operations in Australia, New Zealand, and the USA. The company reported growth in the ANZ region and wholesale partners, while the USA market experienced a revenue decline due to the prior divestment impact. Despite these challenges, City Chic’s omni-channel model, including a strong online presence and marketplace partnerships, continues to underpin its growth trajectory.
The Group’s balance sheet remains robust with $7.95 million in cash and a $10 million clean debt facility extended to December 2026. The facility requires the company to maintain a nil drawn balance twice annually, a covenant City Chic has complied with during FY25, providing confidence in its liquidity position.
Outlook and Risks
Looking ahead, City Chic is optimistic about FY26, expecting improved consumer confidence and economic conditions in ANZ, alongside continued execution of its ‘Store to Door’ initiative and expansion plans with 6-8 new store openings. The company aims for cash positive operations in FY26, supported by further cost reductions and revenue growth initiatives.
However, the company acknowledges ongoing risks including macroeconomic volatility, trade tensions particularly between the USA and China, and litigation related to a dispute with iCare NSW over workers’ compensation insurance premiums. Management continues to monitor these risks closely while advancing its transformation agenda.
Governance and Remuneration
City Chic’s governance framework remains strong, with an experienced board and executive team leading the turnaround. Executive remuneration is aligned with performance, with no short-term incentives paid in FY25 due to the loss position, and long-term incentives structured to reward sustained growth and profitability.
Bottom Line?
City Chic’s FY25 results mark a pivotal step in its turnaround journey, but execution risks and external uncertainties will test its resilience in FY26.
Questions in the middle?
- Will City Chic achieve its target of cash positive operations in FY26 amid economic uncertainties?
- How will ongoing litigation with iCare NSW impact the company’s financial position and risk profile?
- Can City Chic sustain revenue growth in the competitive US market following the Avenue divestment?