Universal Store (UNI) H2 2025 earnings summary

Executive summary

• Group sales reached $333.3 million, up 15.5% year-over-year, with strong growth in Universal Store and Perfect Stranger segments and all three retail banners delivering growth.

• Underlying EBIT rose 15.9% to $54.6 million, and underlying NPAT increased 15.2% to $34.8 million compared to the prior year.

• Statutory NPAT declined 32.3% to $23.3 million due to a $13.6 million CTC goodwill impairment charge.

• Gross margin improved by 100 basis points to 61.1%, driven by product mix, private label growth, and disciplined inventory management.

• Online sales grew 8.6%, now representing 13.3% of total sales.

Financial highlights

• Universal Store sales were $280.9 million (+15.0% year-over-year), with LFL sales up 13.0%.

• Perfect Stranger sales surged 83.1% to $25.5 million, with LFL sales up 25.5%.

• CTC sales declined 9.8% to $40.1 million, with DTC LFL sales up 2.9% and wholesale sales down 13.8%.

• Underlying EPS was 45.4 cps, up 14.6% year-over-year; full-year dividends totaled 38.5 cps, up 8.5%.

• Net cash at year-end was $17.2 million, up 20.3% from the prior year; operating cash flow rose 23.3% to $98 million.

Outlook and guidance

• FY26 to date (weeks 1–7): Group sales up 17.2% year-over-year; US sales up 14.7%, PS up 52.8%, CTC DTC up 12.9%.

• Management expects CTC wholesale sales to remain challenging in FY26, with the channel now less than 5% of Group sales.

• Plans to open 11–17 new stores in FY26 across all brands.

• Continued investment in team capability, store rollout, and technology, with cost of doing business growth expected to moderate.

• Expecting tougher comps in the upcoming peak season, with focus on maintaining like-for-like sales growth.