Universal Store (UNI) H2 2026 earnings summary

Executive summary

• Group sales reached AUD 376.1 million (or $376.1 million), up 12.9% year-over-year, with strong growth across all retail banners, especially Perfect Stranger (+40.8%) and Universal Store (+11.5%).

• Underlying EBIT rose 17.2% to AUD 64 million ($64.0 million), and underlying NPAT increased 16.3% to AUD 40.5 million ($40.5 million).

• Statutory NPAT fell 21.6% to AUD 18.2 million due to a AUD 23.8 million non-cash impairment of CTC intangible assets.

• Fully franked dividend for FY26 increased 11.7% to AUD 0.43 (43.0 cps), with an 81.5% payout ratio on underlying profit.

• Net cash position improved 35.5% to AUD 23.3 million, with no external borrowings.

Financial highlights

• Gross profit margin improved 140 basis points to 62.5% year-over-year.

• Underlying EPS was AUD 0.528 (52.8 cents), up 16.3% year-over-year.

• Cost of doing business increased 100 basis points to 34.1% of sales due to investments in team and technology.

• Cash flow from operations to EBITDA conversion was 104%.

• Five-year sales CAGR at 12.3% (FY21-FY26); underlying EBIT 5-year CAGR at 7.3%.

Outlook and guidance

• FY27 YTD (first seven weeks): Group DTC sales up 9.1% year-over-year; US LFL sales up 2.9%, PS up 17.6%, CTC DTC up 3.8%.

• Plan to open 16–20 new stores in FY27, including 9–10 Universal Store, 6–8 Perfect Stranger, and 1–2 THRILLS stores.

• Gross profit expected to benefit from favorable AUD/USD rates, offsetting higher freight and energy costs.

• Continued investment in team capability, technology, and strategic priorities to support growth.

• CTC wholesale channel expected to remain weak in FY27.