Shares in Universal Store Holdings Ltd (ASX: UNI) were trading higher on Thursday morning after the company delivered a profit result which bested analyst expectations.
The youth-focused fashion retailer said in a statement to the ASX that group sales for the first half had come in at $209.6 million, up 14.2% on the previous corresponding period.
Sales in the core Universal Store division were $174.8 million, up 11.9%, or 8.7% on a like for like basis.
Sales in the Perfect Stranger division were up 41.5% to $17.8 million or up 14.8% on a like for like basis, while CTC sales were up 4.8% to $23.2 million.
The company's underlying net profit was up 22% to $28.3 million.
Universal Store also declared a fully-franked interim dividend of 26 cents per share, up from 22 cents for the same period last year.
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Delivering across the board
The company's Chief Executive, Alice Barbery, said regarding the results:
The group delivered a solid first half result, with robust sales growth and gross margin expansion. This growth reflects the team's continued excellence in providing our customers with on-trend products for their occasions, a service-oriented experience and engaging communication. We note that the youth fashion customer remains discerning, choosing to spend on quality, on-trend clothing from brands they love. The group continues to focus on cost discipline as we build our team and system capability to support our future growth.
From a divisional perspective, the company said Universal Store's own-brand products performed well.
The company said:
The group's private brands performed well during the period with Neovision, Perfect Stranger and Common Need remaining the top three brands within Universal Store. Neovision continues to resonate with customers, representing a 19% sales mix contribution to Universal Store format sales.
Online sales grew 6.3% in the first half and represented 12.9% of sales, while four new stores were opened and one store was closed as planned, as its centre undergoes refurbishment.
The company had 87 Universal Store outlets at the end of the half.
In the Perfect Stranger division, three new stores were opened, and one relocated, with store numbers now sitting at 22.
The company said:
The company has invested in dedicated resources to support PS brand, marketing and product capabilities. Management's focus is on growing brand awareness and evolving the product range, focusing on quality and refined collections.
In the CTC network, there were now nine stores, the company said, following one new store opening during the half.
Jarden analysts had a look at the profit result and said net profit beat consensus expectations by about 7%.
Jarden has a price target of $10.69 on the shares, which were trading 3.6% higher on Thursday morning at $8.69.
Universal Store was valued at $643.7 million at the close of trade on Wednesday.
