The All Ordinaries (ASX: XAO), or ASX All Ords, consumer discretionary stock Universal Store Holdings Ltd (ASX: UNI) is a top idea to buy according to experts from Macquarie Group Ltd (ASX: MQG).
Macquarie describes Universal Store as a retailer that operates offline and online clothing stores in the youth segment, with a focus on Australia, though it reportedly has aspirations for New Zealand expansion. Universal Store's businesses include Universal Store, Perfect Stranger and CTC (THRILLS and Worship).
The company recently provided a trading update for FY26, which showed financial year to date direct to customer (DTC) customer sales growth of 13.7% year-over-year.
Let's take a look at what Macquarie is seeing and likes about the ASX All Ords stock.
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Strong FY26 update
Macquarie said that Universal Store's sales remain strong, but it's cycling tougher comparable sales from FY25 as FY26 progresses.
The broker said that the 13.7% growth was below its forecast of 14.7% growth, but ahead of wider analyst consensus forecasts of 11.6%. Macquarie also noted that growth was driven by all brands.
Universal Store total sales increased 11.4% with like-for-like sales growth of 7.7%.
Perfect Stranger total sales rose by 40.5%, with like-for-like sales growth of 13.9%.
CTC delivered total sales growth of 14.1%, with like-for-like sales growth of 2.3%, though the CTC wholesale sales remain challenged, with sales down 6.3% (but this represents less than 5% of total annual group sales).
The FY26 gross margin remained consistent with the second half of FY25, implying a gross margin of 61.7%.
Macquarie also noted that the store rollout guidance was reaffirmed. In FY26 to date, the ASX All Ords stock has opened four new stores (two Perfect Stranger, one Universal Store and one THRILLS).
Four new stores are set to open before Christmas, and it remains on track to achieve its guidance of opening between 11 and 17 new stores for FY26. Macquarie is expecting the business to open 14 new stores in FY26.
The broker was also pleased to note that the business has an attractive $17 million net cash position, which gives the company offshore expansion optionality.
Is the ASX All Ords stock an attractive buy?
Macquarie has an outperform rating on the business, thanks to its strong sales growth, improving consumer demand environment, increased conversion and penetration into private label products, and ongoing store rollout growth.
The broker has a price target of $10.20 on the business, which is where Macquarie thinks the share price will be trading in 12 months from the time of the investment call. That implies a possible rise of more than 12% in the next year.
Macquarie's estimates suggest that the ASX All Ords stock could grow its earnings per share (EPS) to 51.7 cents and the dividend per share could be hiked to 43 cents per share.
At the current Universal Store share price, that means it's trading at less than 18x FY27's estimated earnings with a possible grossed-up dividend yield of 6.8%, including franking credits.
