City Chic Collective (ASX:CCX) said it is targeting the lower end of the range of the fiscal year 2025 guidance it had earlier announced and cautioned that volatile market conditions as well as uncertainty caused by the tariffs announced by the US could lead to results falling short of the target, according to a Monday Australian bourse filing.
The company expects fiscal 2025 revenue of between AU$137 million and AU$147 million as well as earnings before interest, taxes, depreciation, and amortization of between AU$8 million and AU$12 million.
The tariffs currently add 145% to the average duty rate of 27.5% on its US products, and they remain subject to change.
Around 20% of the Group's revenue is generated in the US, and over 90% of its products are sourced from China. In anticipation of the tariffs, the firm said it brought the bulk of its summer 2025 range and a substantial portion of its winter 2026 product into the US ahead of the changes being implemented.
Further, the company has started discussions with its suppliers to further mitigate the impact of the increased tariffs, and it is working with them to manage the existing order pipeline. The firm has, for the time being, paused all additional stock entering the US market while cutting marketing expenditure to baseline requirements.
The Australia and New Zealand business remains on track to have 78 stores open by the end of fiscal 2025.
City Chic Collective's shares dropped 2% in early trading on Monday, earlier hitting an all-time low.
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