Universal Store (UNI) H1 2025 earnings summary

Executive summary

• Group sales reached $183.5 million in H1 FY25, up 16.1% year-over-year, with underlying EBIT up 14.9% to $35.4 million and underlying NPAT up 16% to $23.2 million, driven by strong growth across core brands and robust gross margin expansion.

• Statutory NPAT declined 45.6% to $11.3 million due to a $13.6 million impairment charge related to CTC goodwill.

• Gross profit margin improved by 90 basis points to 60.6% despite industry-wide discounting.

• Online sales grew 12.6% to $25.2 million, representing 13.7% of total sales.

• Net cash position was $37.7 million at period end, with no borrowings and strong cash flow conversion at 125% of EBITDA.

Financial highlights

• Underlying NPAT rose 16% to $23.2 million; statutory NPAT at $11.3 million due to the CTC impairment.

• Underlying EBIT up 14.9% to $35.4 million; underlying EBITDA up 17.4% to $54.5 million.

• Underlying EPS was 30.3 cents, up 15.2% year-over-year.

• Cost of doing business increased 170 basis points to 30.9% of sales, reflecting wage inflation, team investment, and higher bonus accruals.

• Record half-year total sales, with a five-year sales CAGR of 13.9%.

Outlook and guidance

• Early H2 FY25 trading shows group DTC sales up 31.8% year-over-year, with Universal Store up 27.6%, Perfect Stranger up 90.1%, and CTC up 40.1%.

• New store rollout on track for 9–15 new stores in FY25, with 7 opened in H1 and 5 more confirmed for H2.

• Management expects wholesale to remain challenging for CTC in H2 FY25; wholesale now less than 5% of group sales.

• Focus on disciplined pricing, inventory management, and operational efficiency to navigate macroeconomic challenges.

• Cautious approach to comp growth for the remainder of FY25 due to tougher comparatives and competitive environment.