City Chic posts solid sales growth, especially in the US
Global plus size fashion retailer City Chic says it has accelerated growth across all regions, and reached an “exceptionally strong position” in the US market.
For the 53 weeks to July 3, group sales rose 39 per cent to $369.2 million while tax-paid profit increased 4.7 per cent to $22.3 million. Comp sales rose 25.5 per cent.
Organic growth in all channels drove US sales up 53.9 per cent to $162.4 million while Australian sales reached $161.8 million, up 11 per cent notwithstanding Covid-related store closures.
The business lost 13.4 per cent of its trading days in Australia however online sales continued to surge – up 27.5 per cent following the introduction of the “conservative” product range.
The company’s global customer base grew 30 per cent to 1.4 million active customers while its website registered 78.6 million visits – a 35 per cent increase year on year.
Phil Ryan, CEO and MD of City Chic, said the business adapted to overcome challenges presented by the pandemic and still pursue its growth plans.
“To ensure sustained growth into the future, we established a sophisticated global distribution network through our own websites and a global partner network. This included diversifying our global supply chain into new sourcing regions and investing in inventory ahead of the curve.”
The business expects to increase retail prices where necessary, to protect margins and will boost inventory by 52 per cent to protect itself from potential shortages rising from supply-chain interruptions during the next financial year.