Latest news with #CityChicCollective
Fibre2Fashion
08-05-2025
- Business
- Fibre2Fashion
Australia's City Chic prepares for US tariff surge with strategic move
Australian multi-channel retailer City Chic Collective Limited has proactively accelerated the shipment of its Summer 2025 collection and a significant portion of its Winter 2026 range to the US, in response to the US government's recent announcement of steep global tariff increases. US contributes around 20 per cent to City Chic Collective's overall revenue, and more than 90 per cent of its product sourcing originates from China. The new measures significantly impact products manufactured outside the US, with Chinese imports facing particularly steep increases. This forward-planning move ensures that City Chic has ample pre-tariff inventory to maintain uninterrupted operations through the second quarter of FY26. This cushion provides vital time to evaluate long-term sourcing and pricing strategies amidst ongoing trade uncertainties, City Chic said in a press release. City Chic Collective has fast-tracked US shipments of its summer 2025 and winter 2026 ranges to avoid steep new tariffs, as over 90 per cent of its products are sourced from China. The company has paused further US imports, cut marketing spend, and expects lower FY26 US sales. It may exit the US market at minimal cost if tariffs remain commercially unviable. The group is actively working with its suppliers to manage the existing order pipeline and has, for the time being, paused all further stock entering the US market. Marketing spend has also been reduced to baseline requirements. Due to the tariff situation and its potential impact on consumer demand, US sales expectations have been reduced for FY26. Pleasingly, with its predominantly variable cost structure, and a further $1.5 million in fixed cost reductions, it is anticipated that this approach will help enable the business to maintain a neutral contribution margin in the short term, while also unlocking a material portion of cash tied up in working capital through the sell-down of pre-tariff inventory. The City Chic management team is monitoring all peer retailers in the US that source product from China, many of which are anticipating or already implementing price increases. While the group will continue to closely monitor market developments, in the current economic climate it does not believe that it will be feasible to raise prices sufficiently to entirely offset tariffs in the US without materially impacting demand. Given the ongoing economic uncertainty and the fluid nature of tariff negotiations, it is currently not possible to reliably estimate the impact on US revenue for the remainder of FY25. However, if these conditions persist in the medium to long term, the group has begun discussions with suppliers to explore further mitigation strategies. Owing to recent business restructuring and a flexible cost base, it retains the ability to exit the US market at minimal cost should the tariff environment prove commercially unviable, added the release. Fibre2Fashion News Desk (SG)
Fibre2Fashion
07-05-2025
- Business
- Fibre2Fashion
Australia's City Chic reports strong ANZ gains, US sales fall
Australian omni-channel retailer of apparel and footwear City Chic Collective has reported total growth of 8 per cent on prior corresponding period (PCP) in the first 18 weeks of the second half (H2) of fiscal 2025 (FY25). It reported mixed performance across regions, driven by challenging trade and consumer sentiment, particularly in the US. The result was driven by strong performance in Australia and New Zealand (ANZ), which grew 17 per cent with comparable sales up 21 per cent across all channels. In contrast, the US saw a decline of 13 per cent year-over-year (YoY). The group online traffic rose by 23 per cent, while gross margin remained in line with expectations. The ANZ business remains on track to operate 78 stores by the end of FY25, including the newly opened contemporary-format store in Wetherill Park, which has received highly positive customer feedback. The growth has been lower than planned, with the expected uplift from the recent interest rate cut and improved consumer sentiment yet to materialise to the extent the group anticipated, City Chic Collective said in a press release. City Chic Collective has reported 8 per cent growth in the first 18 weeks of H2 FY25, led by strong 17 per cent growth in ANZ, while the US market declined 13 per cent. Online traffic rose 23 per cent, and gross margin held steady. The group is targeting the lower end of its revised full-year revenue and EBITDA range due to ongoing US volatility, while continuing to focus on sales and margins. At the H1 FY25 results announcement, the group revised its full-year guidance to revenue between $137 million and $147 million, with EBITDA projected between $8 million and $12 million. Given ongoing volatility in the US market and trading conditions in the first 18 weeks of 2H FY25, City Chic is now aiming for the lower end of these ranges. However, continued uncertainty may cause actual results to fall short. Management remains focused on executing its strategy, driving sales, safeguarding margins, and implementing the cost reduction programme to strengthen the business for long-term growth, added the release. Fibre2Fashion News Desk (SG)
Yahoo
14-04-2025
- Business
- Yahoo
Bullish City Chic Collective Insider Buying Worth AU$1.37m Yet To Pay Off
The recent price decline of 10.0% in City Chic Collective Limited's (ASX:CCX) stock may have disappointed insiders who bought AU$1.37m worth of shares at an average price of AU$0.24 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$569.9k. Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The insider Brett Blundy made the biggest insider purchase in the last 12 months. That single transaction was for AU$926k worth of shares at a price of AU$0.28 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.099). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. In the last twelve months City Chic Collective insiders were buying shares, but not selling. They paid about AU$0.24 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date! View our latest analysis for City Chic Collective City Chic Collective is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket. We saw some City Chic Collective insider buying shares in the last three months. Independent Non-Executive Chairman Michael Graham Kay shelled out AU$60k for shares in that time. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor. Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that City Chic Collective insiders own 8.8% of the company, worth about AU$3.4m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing! It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that City Chic Collective insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that City Chic Collective is showing 3 warning signs in our investment analysis, and 1 of those is significant... Of course City Chic Collective may not be the best stock to buy. So you may wish to see this free collection of high quality companies. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
