Plus-size womenswear brand City Chic Collective has managed to lift its sales in Australia and New Zealand, despite rapidly declining revenues in the US.
With four stores, an e-commerce and a marketplace presence in New Zealand, City Chic managed to grow its combined Australia and New Zealand sales by 7.8 per cent in fiscal 2026.
Ending the year with $157 million in sales, City Chic also saw its earnings skyrocket by 80 to 95 per cent year-on-year.
“While we had anticipated second-half tailwinds from rate cuts, instead we saw further rate increases and higher fuel prices, which resulted in record-low consumer confidence in Australia,” said Phil Ryan, CEO and MD of City Chic.
“Against this challenging backdrop, the team has remained focused on executing our strategy and meeting our customer where she is. This has become our motto as we continue to navigate this environment with her.”
Growth was also seen in City Chic’s customer base, which expanded by 3 per cent, to 517,000.
“Our customer base has continued to grow, and the feedback and satisfaction scores we receive month after month remain very encouraging. The improvements we’ve made in product and the service delivered by our store teams are clearly resonating with her, reinforcing what makes City Chic special,” Ryan added.
“We continue to build a more resilient and profitable business, characterised by a stronger margin profile, a lower cost base and disciplined inventory management. Maintaining our strategic focus on product and customer experience, we are confident in our ability to continue to grow sales and deliver sustainable profitability over time.”
In the US earlier in the year, City Chic reduced its inventory to navigate tariff-related challenges. But these actions didn’t do much to stop the decline in sales of 28.1 per cent for the full year. This decline in sales grows to 42.2 per cent when factoring in the closure of City Chic’s wholesale business in the US.