City Chic Collective Navigates US Tariff Challenges with Strategic Inventory Moves

City Chic Collective Limited ( (AU:CCX) ) just unveiled an announcement.

City Chic Collective Limited has announced an update on the impact of increased US tariffs on its operations, particularly affecting products sourced from China. With 20% of its revenue generated in the USA and over 90% of its products sourced from China, the company has taken proactive measures by importing a significant portion of its inventory ahead of the tariff changes. This strategy aims to sustain operations through Q2 FY26 and mitigate the impact on consumer demand. Despite a reduction in USA sales expectations for FY26, City Chic plans to maintain a neutral contribution margin by reducing costs and selling down pre-tariff inventory. The company is also exploring options to exit the US market if the tariff situation remains unfavorable. Meanwhile, the ANZ market has shown growth, with a 17% increase in sales on a prior comparable period basis, although the overall growth has been lower than anticipated. City Chic remains focused on aligning its cost base with revenue levels and has revised its FY25 financial targets to the lower end of its previously announced range.

More about City Chic Collective Limited

City Chic Collective is a global omni-channel retailer specializing in plus-size women’s apparel, footwear, and accessories. The company operates a network of 76 stores across Australia and New Zealand, with additional online presence in ANZ, the USA, and through third-party marketplace and wholesale partners in Australia, New Zealand, USA, and Canada.

YTD Price Performance: -14.29%

Average Trading Volume: 692,377

Technical Sentiment Signal: Strong Buy

Current Market Cap: A$32.76M

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