Universal Store Holdings Limited (ASX:UNI) Announces Strong H1 FY25 Results
Financial Performance
Universal Store Holdings Limited (ASX:UNI) reported H1 FY25 sales of $183.5 million, a 16.1% increase compared to the prior corresponding period. The underlying EBIT rose by 14.9% to $35.4 million, driven by sales growth, improved gross margins, and effective cost control. The group’s gross margins expanded by 90 basis points despite competitive discounting.
Business Update
The company expanded its store network by opening seven new stores in H1 FY25, including four Universal Store, two Perfect Stranger, and one THRILLS store, bringing the total to 109 stores as of December 2024. The Perfect Stranger retail format achieved a 25.3% like-for-like sales growth, attracting new customers. Wholesale sales for the CTC segment declined by 16.4% due to market conditions, while direct-to-customer sales grew by 3.2%.
Balance Sheet & Dividends
Universal Store maintains a strong balance sheet with a closing cash balance of $37.7 million and no borrowings, excluding lease liabilities. The interim H1 FY25 dividend was declared at 22.0 cents per share, representing a 68% payout ratio and a 33% increase from the previous year.
Trading Outlook
The group remains optimistic about future growth, with plans to open three additional stores in Q4 FY25. Management expects continued growth in the direct-to-customer channel and is focused on expanding the Perfect Stranger format while stabilising the wholesale channel.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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