City Chic Collective expects to report lower sales revenue in the fiscal first half, despite a positive holiday trading period.

The plus-size women’s fashion retailer forecasts to report sales revenue of $69.5 million in the 26 weeks to December 29, down 3.6 per cent from the year-ago period.

It estimates a 2.8 per cent increase in Australia-New Zealand revenue as stores and online business performed above the company’s expectations.

“We expect this momentum to continue into H2,” said Phil Ryan, City Chic CEO and MD.

“Additionally, our new summer product has been well-received, and the increase in sell price has contributed to materially stronger margins.”

Last year, the company launched its first bridal line, First Impressions, in Australia via its website and select retail locations. 

Meanwhile, City Chic estimates a 22.4 per cent decline in the Americas revenue, citing the exclusion of Avenue-branded products in partner sales.

“While US online performed largely in line with last year, the improvement in the US partner business fell short of our expectations,” said Ryan.

“However, the 25 per cent growth in City Chic branded products through our websites and partners at materially higher gross margins highlights the opportunity for our brand in the market.”

“Realising the full potential of the USA business is now my top priority in the second half of FY25 and into FY26.”