Universal Store Holdings Surges 15.5% in Sales, Eyes Aggressive Store Expansion
Universal Store Holdings delivered a robust FY25 performance with strong sales growth and margin expansion, driven by its Universal Store and Perfect Stranger brands. Despite a statutory profit hit from impairment charges, the company is optimistic about FY26 growth backed by new store openings and digital investments.
- Group sales rose 15.5% to $333.3 million, led by Universal Store and Perfect Stranger
- Underlying EBIT increased 15.9% to $54.6 million with gross margin up 100 basis points
- Statutory NPAT declined 32.3% due to a $13.6 million goodwill impairment in CTC segment
- Declared fully franked final dividend of 16.5 cents per share, up 8.5% for the full year
- Plans to open 11 to 17 new stores in FY26 and continues investing in technology and team
Strong Sales and Margin Growth Define FY25
Universal Store Holdings Limited (ASX – UNI) has reported a solid set of financial results for the fiscal year ended June 30, 2025. The company posted group sales of $333.3 million, marking a 15.5% increase over the prior year. This growth was primarily driven by the Universal Store brand, which grew sales by 15.0%, and the Perfect Stranger label, which surged an impressive 83.1%.
Underlying earnings before interest and tax (EBIT) rose 15.9% to $54.6 million, while underlying net profit after tax (NPAT) increased 15.2% to $34.8 million. The company also improved its gross profit margin by 100 basis points to 61.1%, reflecting a stronger mix of private brand sales and better inventory management.
Impairment Charges Temper Statutory Profit
Despite the encouraging underlying results, statutory NPAT fell sharply by 32.3% to $23.3 million. This decline was primarily due to a $13.6 million goodwill impairment charge related to the CTC segment, which includes the THRILLS and Worship brands. The CTC business experienced a 9.8% sales decline, largely driven by challenges in its wholesale channel and tariff-related export reductions to the USA.
Management remains confident in CTC’s long-term prospects, having onboarded new leadership and continued to refine its retail and online strategies. The segment’s direct-to-customer sales grew modestly by 2.9%, indicating some resilience despite wholesale headwinds.
Store Expansion and Digital Investment Fuel Future Growth
Universal Store Holdings is not resting on its laurels. The company plans to open between 11 and 17 new stores in FY26, including four to six Universal Store locations, five to seven Perfect Stranger outlets, and two to four THRILLS stores. This expansion strategy is balanced with a focus on long-term profitability, as evidenced by the planned closure and relocation of certain stores.
Additionally, the Group continues to invest heavily in its team and technology infrastructure to support future growth and enhance digital capabilities. Online sales grew 8.6% in FY25 and now represent 13.3% of total sales, underscoring the importance of e-commerce in the company’s omni-channel approach.
Positive Start to FY26
Early trading in FY26 is encouraging, with group sales up 17.2% in the first seven weeks. Universal Store and Perfect Stranger continue to perform strongly, with like-for-like sales growth of 10.7% and 19.3% respectively. Even the CTC direct-to-customer channel showed a 12.9% sales increase, despite ongoing wholesale challenges.
CEO Alice Barbery highlighted the company’s disciplined approach to cost management and product innovation, noting that youth fashion consumers remain discerning and willing to invest in quality, on-trend apparel. The company’s strategic focus on brand differentiation and customer experience appears to be paying dividends.
Bottom Line?
Universal Store Holdings’ FY25 momentum and strategic investments set the stage for a pivotal FY26, but wholesale pressures in CTC warrant close watch.
Questions in the middle?
- How will the CTC segment’s wholesale challenges impact overall profitability in FY26?
- Can Perfect Stranger sustain its rapid growth without cannibalising Universal Store sales?
- Will the planned store expansion deliver the expected returns amid evolving retail dynamics?
