City Chic Collective Limited

Revenue was $69.2 million, flat versus the prior corresponding period. Underlying EBITDA was $6.5 million, up from $3.5 million, and trading gross margin was 62.2%, up 220 basis points and above the company’s 62% target. ANZ revenue grew 7.4% and ANZ trading gross margin dollars increased 10.1%; U.S. revenue fell 31% to $9.7 million, but gross margin there improved by more than 4 percentage points. Operating cash flow was $10.1 million, inventory was down 21%, cash was $5.4 million with an undrawn $10 million bank facility, and the company said it fully repaid drawn debt and extended the facility to 31 March 2028. For the first 8 weeks of Q3, ANZ revenue was up 9% and gross margin dollars were up 17%; no formal full-year guidance was given.

Phil Ryan framed the half as proof that the company’s simplified model and product/customer reset are working, emphasizing better product fit, tighter quality control, and disciplined promotion. He said the company is focused on returning to stronger revenue growth while protecting expanded gross margins, and highlighted initiatives such as differential ranging, broader lifestyle categories, and size-range trials. He was constructive on the U.S. despite reduced purchasing, saying the consumer held up better than expected and that new inventory should support growth from March onward.

James Plummer said the $6.5 million underlying EBITDA represented a $3 million improvement on the prior period and credited disciplined execution and cost control. He highlighted the ANZ gross margin gains, the U.S. revenue decline to $9.7 million due to deliberate purchase cuts in response to tariff volatility, and noted that the U.S. still contributed profit because of better gross margin and a local variable cost base. He also pointed to $10 million in operating cash flow, reduced inventory, full repayment of drawn debt, and extension of the debt facility to 31 March 2028 under the same terms.

Analysts focused on the U.S. turnaround and the shift in Amazon’s operating model. Management said the U.S. held up better than expected despite almost no new product, with around 50,000 active customers still on hand and inventory reinvestment set to ramp from March into Q4. On Amazon, Phil Ryan said the move from wholesale to a marketplace relationship is intended to give the company more control over inventory, range and pricing, but it will create a short-term revenue headwind in the U.S. partners line during the second half.