Universal Store Holdings Ltd posted a 12.9% year-over-year increase in group sales to AUD 376.1 million for the six months ended June 30, 2026, as underlying earnings before interest and tax rose 17.2% to AUD 64 million. The company’s shares surged 14.61%, from AUD 7.05 to AUD 8.08, following the release of its half-year results.
Underlying net profit after tax climbed 16.3% to AUD 40.5 million, while statutory NPAT declined 21.6% to AUD 18.2 million due to a AUD 23.8 million non-cash impairment of intangible assets related to the Thrills (CTC) division. The group maintained a net cash balance of AUD 23.3 million, up 35.5% from the prior period, with no external borrowings excluding leases. Operating cash flow totaled AUD 111 million, achieving a 104% EBITDA conversion rate.
Revenue growth was led by the Universal Store banner, which reported AUD 313.3 million in sales, up 11.5% year-over-year, with like-for-like sales increasing 8.1%. Private label products accounted for 51% of sales, while online revenue rose 9.4% to AUD 39.6 million. The banner operated 88 stores as of June 30, with plans to expand to over 100 locations. Perfect Stranger delivered the strongest growth, with sales surging 40.8% to AUD 35.9 million, driven by a 13% like-for-like increase and a 49.5% rise in online sales. The banner now contributes 9.4% of group sales, up from 7.6% previously.
The Thrills (CTC) division reported a 9.2% decline in total sales to AUD 36.4 million, primarily due to an 18.9% drop in wholesale revenue amid reduced U.S. exports and closed retail accounts. Retail format sales, however, grew 16.9% to AUD 12.7 million, with like-for-like retail sales up 17.8%. The division operated nine stores at period-end, having opened one new location during the half.
Cost of doing business increased by 100 basis points to 34.1%, reflecting AUD 6.3 million in wage inflation and team capability investments, AUD 9.2 million in incremental store-related costs, and AUD 800,000 in system upgrades. Cash rental costs rose an average of 5% on 8 leases in holdover.
For FY27, Universal Store plans to open 16 to 20 new stores across its banners, including 9 to 10 Universal Store locations and 6 to 8 Perfect Stranger stores. Early trading in the first seven weeks of FY27 showed group direct-to-consumer sales up 9.1% year-over-year, with Perfect Stranger leading growth at 45.8%. The company has hedged 43% of expected FY27 U.S. dollar expenditures at an average rate of AUD 0.69.
Universal Store declared a fully franked half-year dividend of AUD 0.17 per share and a full-year dividend of AUD 0.43 per share, up 11.7%, marking the fifth consecutive year of dividend increases. The stock offers a 6% dividend yield, while return on equity stands at 26%.
