Universal Store Holdings (ASX: UNI) reported a 12.9% rise in group sales to $376.1 million for the fiscal year ended June 30, 2026, driven by expansion across its retail banners. Underlying earnings before interest and tax increased 17.2% to $64.0 million, while underlying net profit after tax climbed 16.3% to $40.5 million.
The company’s gross profit margin expanded by 140 basis points to 62.5%, supported by approximately 15 basis points of foreign currency tailwinds. Cost of doing business rose 100 basis points to 34.1% of sales, totaling $128.2 million, up from $110.4 million in the prior year. A $23.8 million non-cash impairment charge against CTC’s intangible assets, including $18.6 million in goodwill and $5.2 million related to the THRILLS brand name, weighed on statutory net profit, which declined 21.6% to $18.2 million.
Underlying earnings per share increased to 52.8 cents from 45.4 cents, while the board declared a final dividend of 43.0 cents per share, fully franked. This represents an 11.7% increase from the prior year and marks the fifth consecutive year of dividend growth. The payout ratio stood at 81.5% of underlying profit.
Universal Store’s flagship banner recorded sales of $313.3 million, up 11.5%, with like-for-like growth of 8.1%. Perfect Stranger delivered the strongest growth, with sales surging 40.8% to $35.9 million and like-for-like growth of 13.0%. The CTC division’s direct-to-consumer sales rose 16.9% to $12.7 million, though wholesale sales fell 18.9% to $23.7 million amid weaker U.S. export demand.
The group expanded its store network to 123 locations by year-end, opening 13 new stores in FY26 and planning 16 to 20 openings in FY27. Cash flow from operations reached $111.0 million, with capital expenditure totaling $12.1 million. The company ended the year with $23.3 million in cash and no borrowings.
Shares in Universal Store surged 14.75% to $8.09 following the results release, reflecting a 6% dividend yield at current prices.
