CONNECT WITH US
eCommerce

eCommerce

City Chic sales down, but margin improves as focus shifts to full-price retail

Inside Retail Australia logo

Published on

Add as a preferred source on Google
City Chic sales down, but margin improves as focus shifts to full-price retail

City Chic Collective has reported a modest drop in revenue in its latest trading update, as the retailer underwent a strategic reset that shifts its focus to full-price sales.

For the 18 weeks to November 1, group revenue, excluding wholesale, was down 1.7 per cent year-on-year, while gross margin dollars increased 2.2 per cent.

The company said the results reflect a strategic reset that focuses on profitable, full-price sales, disciplined inventory management, and reduced promotional activity.

“The sales momentum we have built through the Spring season in ANZ, together with expanded gross margins from a stronger full-price sales mix, demonstrates that our strategy is delivering improved trading performance, despite a challenging retail environment,” said CEO and MD Phil Ryan.

“As expected, the reduction in promotional activity initially affected sales, particularly online where we comped higher promotional activity last year.

“Our full-price stores remain the key driver of City Chic’s profitability, with strong comparable sales growth reflecting the positive customer response to improvements in product, quality and value. Higher trading gross margins in stores and online, a more profitable ANZ online sales mix with lower associated fulfilment costs, and a profitable US operation are further strengthening our performance, delivering a materially more profitable group,” he added.

The company now expects to generate positive EBIT in the first half, subject to continuing sales momentum into the Black Friday and Christmas trading period.

3 million.



Source link
Related Topics:eCommerce

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.