City Chic Collective Limited (ASX:CCX) Updates on USA Tariffs and 2H FY25 Trading
USA Trade Tariffs Impact
City Chic Collective Limited has responded to increased global tariff rates imposed by the United States, particularly affecting products sourced from China. Approximately 20% of the Group’s revenue is derived from the USA, with over 90% of products sourced from China. The Company has moved its Summer 2025 range and part of its Winter 2026 products into the USA ahead of tariff changes, ensuring sufficient pre-tariff inventory through Q2 FY26. Marketing spend has been reduced to baseline, and further stock entry into the US market is paused.
2H FY25 Trading Performance
In the first 18 weeks of 2H FY25, City Chic reported total growth of 8% on a comparable period basis, with the ANZ segment up 17% and USA sales down 13%. Online traffic increased by 23%, and the gross margin remained in line with expectations. The Group’s cash balance stands at $7 million, with $5 million undrawn from its $10 million debt facility. The ANZ business is on track to open 78 stores by the end of FY25, including a new format store in Wetherill Park that has received highly positive feedback.
Revised FY25 Outlook
Due to volatile market conditions in the USA, City Chic has revised its FY25 financial targets to the lower end of the previously forecasted revenue range of $137 million to $147 million and EBITDA between $8 million and $12 million. The management remains focused on executing its strategy, driving sales, protecting margins, and implementing cost reductions for long-term success.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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