City Chic Collective reports $12M underlying EBITDA

• Underlying EBITDA is forecast to rise by up to 95% to between $12.5 million.
• The company's latest share price is $0.054.
• Management cites disciplined cost management and margin improvements as the primary drivers of this earnings growth.

City Chic Collective (ASX:CCX) expects to report underlying EBITDA between $12.5 million and $13.5 million for the 2026 financial year, representing an increase of up to 95% compared to the previous period.

While the company experienced 7.6% sales growth in its Australia and New Zealand region, overall global revenue declined 3.1% to $130.5 million, largely due to a 28.1% drop in USA sales.

"The disciplined execution of our strategy has delivered a materially stronger earnings result this year, reflecting ongoing margin improvement and strong cost management across the business," said City Chic CEO Phil Ryan.

The company stated that its cost of doing business decreased by approximately 7.5% over the 52 weeks to June 28, primarily driven by operational marketing and labour efficiencies.

City Chic plans to continue its strategic focus as it enters the 2027 financial year, and following the announcement, the City Chic share price was $0.054.

The retailer ended the period in a net cash position, holding a $10 million debt facility that remains available until March 31, 2028.

Inventory levels were also reduced, with the company closing the year at $24.1 million.