Universal Store Holdings improves sales

The fashion retailer has delivered a solid set of FY25 results.

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The Universal Store Holdings Ltd (ASX: UNI) share price is up on Thursday morning.

The premium youth fashion retailer's shares opened around 1% up to $9.09.

This follows the release of the company's full-year results.

Universal Store sales improve amongst solid results

  • Group sales of $333.3 million, up 15.5% on the prior corresponding period (pcp)
  • Gross profit margins lifted +100 basis points vs pcp, to 61.1% 
  • Underlying earnings (EBIT) of $54.6 million, rising 15.9% vs pcp
  • Underlying net profit after tax (NPAT) of $34.8 million, up 15.2% vs pcp
  • A 16.5 cents fully franked final dividend, taking full year dividends to 38.5 cents, an 8.5% increase from pcp

What happened during the year?

Universal Store Holdings lifted revenue in FY25, supported by strong like-for-like sales and a steady pace of store openings. Its core Universal Store brand benefited from an expanded product range and the growing success of in-house label Neovision, while Perfect Stranger emerged as a key growth driver with elevated store formats and premium collections. Across the group, a focus on customer experience and disciplined pricing helped underpin the result.

Not all parts of the business were smooth, with the Thrills and Worship brands facing weaker wholesale demand and higher inventory markdowns. Even so, management continued to invest in leadership, brand positioning, and online strategy to support longer-term growth. Universal Store closed the year with a network of 111 stores and plans to add up to 17 more in FY26 as it looks to build on its momentum.

Management commentary

Commenting on the FY25 results, Group CEO Alice Barbery said:

The Group delivered a very pleasing FY25 result,  achieving strong sales and gross margin growth.  The team continues to execute well, providing our customers with on-trend occasion for wear products, a service-oriented experience and engaging communications.  We observe the youth fashion customer remains discerning and willing to spend on quality, on-trend clothing.   The Group continues to focus on cost discipline as we build our team and system capability to support our future growth.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. Motley Fool contributor Leigh Gant has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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