City Chic Collective is hailing the success of its strategic plan for a turnaround in its trading performance, despite mixed results across different markets.

The plus-sized fashion retailer’s net income totalled $3.3 million while – as forewarned last month – revenue dipped 3.7 per cent to $69.5 million.

Sales in Australia and New Zealand rose by 2.8 per cent to $55.3 million, while sales in the Americas plunged 22.5 per cent to $14.2 million. Revenue from partners tumbled 29.1 per cent to $7.7 million.

“The strong first half earnings turnaround demonstrates the effectiveness of our strategic actions,” said Phil Ryan, City Chic CEO and MD.

“EBITDA was $8.7 million higher than 1H24 due to better trading margins, lower fulfilment costs and materially improved cost of doing business.”

In the first eight weeks of the second half, City Chic’s revenue soared 25 per cent as ANZ revenue surged 30 per cent and US revenue climbed 9 per cent.

However, the company noted that higher clearance activity than anticipated materially affects US trading margin. The group’s online traffic improved by 41 per cent.

The company intends to open three new stores in the second half and more stores next year.

City Chic Collective updated its full-year revenue forecast to between $137 million and $147 million, reflecting higher-than-planned US clearance from January to February and an increase in Amazon marketing.