City Chic Collective has reported a 2.6 per cent increase in revenue for the 18 weeks to November 2, with a 10 per cent rise in its Australia and New Zealand (ANZ) revenue.

The company expects to be operating cash-flow positive for the fiscal year, and its gross margin remains in line with expectations.

“We have achieved this result while reducing inventory and improving our working capital position,” said CEO and MD Phil Ryan.

“We have the right inventory level to drive revenue and positive operating cash flows, with new inventory ready in-market for the critical black Friday and Christmas trading periods in ANZ.”

In the US, revenue fell 21.1 per cent, year-on-year, but performed better than expected, with the business remaining profitable after restructuring it to a variable cost base.

“Our US business has remained profitable and has exceeded sales expectations despite the strategic reduction in purchasing we implemented in response to tariff-induced volatility,” said Ryan.

“The resilience of the US consumer has been a pleasant surprise, and we’re encouraged by the underlying strength of our direct-to-consumer channels.” 

City Chic has also opened two new concept stores during the period at Mount Gravatt in Queensland and Highpoint in Victoria, both performing ahead of expectations.