City Chic Collective (ASX:CCX) has released its financial results for the first half of the 2026 financial year.
The group reported global sales revenue of $69.2 million, underpinned by a significant recovery in the Australia and New Zealand market and continued profitability in the United States.
Underlying EBITDA rose 86% compared to the prior corresponding period, reaching $6.5 million.
A primary driver of this performance was the ANZ region, where trading revenue increased by 7.4% and gross margin grew by 10.1%.
CEO Phil Ryan attributed this growth to "margin discipline" and a shift toward high-value customers, who now represent 58% of the active customer base.
In the USA, the company maintained profitability despite a strategic reduction in inventory, which sat at $24.6 million globally, down 21% a year earlier.
The group’s balance sheet has strengthened through the full repayment of debt, resulting in a net cash position of $5.4 million.
Furthermore, City Chic extended its $10 million debt facility through to March 31, 2028.
Early data from the second half of FY26 indicates sustained momentum. In the first eight weeks of the period, ANZ revenue rose by 9% and trading gross margin dollars increased by 17%.
While USA gross margin dollars currently remain lower, the company has positioned inventory to support a planned relaunch in the fourth quarter.