The Universal Store Holdings Ltd (ASX: UNI) share price is surging higher this morning.
At the time of writing, the fashion retailer's shares are up 10% to $5.70.
Why is the Universal Store share price surging higher?
Investors have been fighting to get hold of the fashion retailer's shares after it revealed that it expects to report a significant jump in its sales and earnings in the first half of FY 2021.
According to the release, Universal Store's first half sales were up 24% to approximately $118 million for the six months ended 31 December.
Management advised that this was driven by a 26.5% increase in like for like sales, which offset store closures in Adelaide, Melbourne, and Sydney during lockdowns.
And thanks to an improvement in its gross margin, Universal Store's profits are expected to grow at an even quicker rate.
The company advised that its underlying earnings before interest and tax (EBIT) is expected to be in a range of $30 million to $31 million for the half. This represents growth of between 61% and 67% on the prior corresponding period.
Universal Store's CEO, Alice Barbery, commented; "Despite a significant period of disrupted trade in Melbourne and to a lesser extent Adelaide and Sydney the results delivered across the first half of FY2021 are well ahead of the results delivered in the prior corresponding period."
"This not only highlights the ability of our team but also our agility to operate in what has been an unpredictable trading environment," she added.
However, due to the ongoing uncertainty relating to COVID-19, the company has decided against providing any guidance for the full year at this time.
An update on its performance so far in the second half is likely to be released with its half year results on February 25.
Elsewhere, the Premier Investments Limited (ASX: PMV) share price is charging 14% higher after the release of an update of its own today.
It expects first half Premier Retail EBIT to be in the range of $221 million to $233 million, up between 75% and 85% on the prior corresponding period.
