City Chic Collective store sales jump 19.6%
Key points
- City Chic reported a 19.6% increase in full-price store sales.
- The company's gross margin dollars grew 2.2%.
- A strategy to reduce discounts is driving the improved performance.
City Chic Collective (ASX:CCX) reported a 19.6% jump in comparable full-price store sales for the first 18 weeks of the 2027 financial year.
The group's total revenue fell 1.7% in the same period as it actively reduced promotional activity.
"The sales momentum we have built through the spring season in ANZ, together with expanded gross margins from a stronger full-price sales mix, demonstrates that our strategy is delivering improved trading performance, despite a challenging retail environment,” said City Chic CEO and Managing Director Phil Ryan.
City Chic stated it is on track to end the first half of the financial year with a positive cash balance and no debt drawn.
The company expects to generate positive earnings before interest and taxes in the first half of the financial year, subject to continuing sales momentum.
Following the announcement, the City Chic Collective share price stood at $0.036.
The retailer operates stores in Australia, New Zealand, and the United States.
City Chic had previously entered a "strategic reset" aimed at improving its inventory management.
