City Chic Collective has reported a dip in revenues, largely due to a 31 per cent hit in the US, related to tariffs.
In a trading update for the half-year ending December 28, the retailer, which has 90 stores in Australia and New Zealand, saw its ANZ revenues climb by 7.4 per cent.
The company’s CEO, Phil Ryan, credited this growth to being “disciplined” over the Black Friday Cyber Monday (BFCM) period, where City Chic “avoided chasing top line sales through excessive promotions”.
“Our customer numbers have remained resilient, and our high-value customer strategy is delivering results,” he added.
“We are focused on deepening that relationship by listening closely, delivering what she wants, and building the loyalty that drives sustainable growth in annual spend.”
But the plus-sized clothing specialists felt the effect of geopolitics in its international markets, Ryan added: “Our US business remained profitable and exceeded sales expectations, despite a deliberate reduction in inventory in response to tariff-related volatility.
“The resilience of the US consumer has been a welcome surprise, and we’re encouraged by the underlying strength of our direct-to-consumer channels.”
Total revenues for the business during the 26-week period fell to $69.2 million, a 0.5 per cent decrease.
Its physical store revenue grew by 3.2 per cent, and online revenues by 3.6 per cent. Partner revenues were the hardest hit with a 29.9 per cent decline.
Ryan added that the company’s overall profitability continues to grow.