Australian multi-channel retailer City Chic Collective Limited has reported a 28.3 per cent decline in group sales revenue for fiscal 2024 (FY24), reaching $131.6 million, compared with the prior corresponding period (PCP).

In the Australia and New Zealand (ANZ) region, revenue dropped by 30.8 per cent to $97.7 million. Comparable store sales in ANZ were down by 15 per cent; however, there was a notable improvement in the fourth quarter, where sales were only 5 per cent down, and the region performed at higher margins. ANZ online sales also faced a significant decline, falling by 38.3 per cent.

The Americas region experienced a 20 per cent decline in revenue, bringing in $33.9 million for FY24. This drop was primarily driven by inventory clearance in the first half and warehouse movements in the second half, which have now been completed, the company said in a press release.

The company’s partners channel, which generated approximately $22.7 million (included in the regional revenue figures), saw a 7.7 per cent decline overall compared to the PCP. Despite this, US partners delivered a strong performance in the second half of the year, with revenue up by 15 per cent. Amazon stood out as a top-performing partner in FY24, and the first six months of the new marketplace partnership with Macy’s showed promising results.

City Chic Collective reported an underlying EBITDA loss of $8.4 million for FY24, highlighting the financial difficulties encountered during the year. On a positive note, the company successfully reduced its inventory by 42.8 per cent, bringing it down to $30.7 million.

“The result for FY24 reflects a year of business transformation, including decisive actions that were taken to streamline the business and focus on our high-value City Chic customer base and product mix in ANZ and the US. In addition, we have delivered a material reduction in operating costs to align with demand,” said Phil Ryan, chief executive officer and managing director of City Chic.

Fibre2Fashion News Desk (DP)