Plus-size womenswear brand City Chic Collective has capped off a year of challenged sales across its group, led by a fast decline in the US market.

The retailer reduced its inventory in the US to navigate tariff-related challenges earlier this year. However, in a full-year fiscal update to the ASX, it shared that the country suffered a 28.1 per cent decline in sales compared to the year prior. The decline in sales grows to 42.2 per cent when factoring in the closure of City Chic’s wholesale business in the US.

But it wasn’t all bad news: City Chic managed to lift its sales in Australia and New Zealand by 7.8 per cent, taking the global figure to $130.5 million for the year, a 3.1 per cent fall on 2025.

“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, and EBITDA, which fell between $11.5 million and $12.5 million, up 80 to 95 per cent.

“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.”