Key Highlights

  • Group sales increased 12.9% to $376.1 million in FY26, led by Universal Store and Perfect Stranger.
  • Underlying NPAT rose 16.3% to $40.5 million, while statutory NPAT declined 21.6% to $18.2 million.
  • A $23.8 million non-cash Impairment relating to CTC Goodwill and the THRILLS Brand name affected statutory earnings.
  • The fully franked full-year Dividend increased 11.7% to 43.0 cents per share.

Universal Store Holdings Limited (ASX:UNI) reported FY26 group sales of $376.1 million for the year ended 30 June 2026, representing a 12.9% increase from the prior corresponding period. At the time of the results announcement on 20 August, UNI shares were trading at $8.10, up 14.96%, or $1.05, on the day.

Underlying EBIT increased 17.2% to $64.0 million, while underlying NPAT rose 16.3% to $40.5 million. Underlying EPS also increased 16.3% to 52.8 cents per share.

The reported statutory result was lower. Statutory NPAT declined 21.6% to $18.2 million after the company recognised $23.8 million in non-cash impairment charges. These comprised an $18.6 million impairment of CTC goodwill and a $5.2 million impairment of the THRILLS brand name.

Gross profit margin increased by 140 basis points to 62.5%. The company also reported a 100-basis-point increase in cost of doing Business to 34.1% of sales, reflecting Investment in team and technology as well as higher incentive provisioning.

Universal Store and Perfect Stranger Sales

Universal Store generated FY26 sales of $313.3 million, up 11.5% from the previous corresponding period. Like-for-like sales increased 8.1%, with growth attributed to higher transaction volumes and average transaction value.

Online Universal Store sales increased 9.4% to $39.6 million and represented 12.6% of the brand's total sales. Five new stores opened during FY26, while one store temporarily closed because of centre redevelopment. The Universal Store network stood at 88 locations at 30 June.

Perfect Stranger recorded sales of $35.9 million, an increase of 40.8%. Like-for-like sales rose 13.0%, while the business opened seven new stores and relocated one during the year. Its store network reached 26 locations.

CTC Records Sales Decline and Impairments

CTC was the main area of reported sales decline. FY26 sales fell 9.2% to $36.4 million, with wholesale sales decreasing 18.9%. The company attributed the wholesale reduction to lower USA exports, the closure of several key retail accounts and lower intercompany sales.

CTC's direct-to-customer retail performance was different, with in-store like-for-like sales increasing 17.8%. Online sales, however, fell 10.5% as the business moved toward a lower promotional and clearance sales mix.

CTC's gross margin increased 240 basis points to 45.3%. Despite this, continued deterioration in the wholesale channel resulted in the $23.8 million non-cash impairment recognised during FY26.

Dividend and Cash Position

Universal Store Holdings determined a fully franked final dividend of 17.0 cents per share, taking the full-year dividend to 43.0 cents per share. The full-year dividend increased 11.7% from the previous year and represented an 81.5% Payout Ratio based on underlying NPAT.

Net cash, excluding Lease liabilities, stood at $23.3 million at 30 June 2026. This was $6.1 million higher than a year earlier, representing an increase of 35.5%.

FY27 Trading Update

For the first seven weeks of FY27, group direct-to-consumer sales increased 9.1% compared with the corresponding period. Universal Store total sales increased 5.5%, with like-for-like sales up 2.9%. Perfect Stranger sales increased 45.8%, including 17.6% like-for-like growth.

CTC direct-to-consumer sales increased 10.1%, while its like-for-like sales increased 3.8%.

The company plans to open 16 to 20 stores during FY27, comprising nine to ten Universal Store locations, six to eight Perfect Stranger locations and one to two THRILLS stores. Four to five refurbishments and three relocations are also planned.

Conclusion

Universal Store Holdings entered FY27 with higher group sales, underlying earnings, cash and dividends compared with FY25, while statutory NPAT declined because of the $23.8 million non-cash impairment associated with CTC and THRILLS. The results also showed contrasting performance across the portfolio, with Universal Store and Perfect Stranger recording sales growth while CTC total sales declined. Early FY27 trading data showed continued sales growth across the direct-to-consumer businesses, alongside the company's planned expansion of its physical store network.