Universal Store Holdings reported a robust FY25 with 15.5% revenue growth to $333.3 million, driven by strong like-for-like sales and new store openings. Despite a goodwill impairment in its CTC segment, the group declared a solid final dividend and advanced its sustainability agenda.
- 15.5% revenue growth to $333.3 million in FY25
- Underlying EBIT rose 15.9% to $54.6 million despite $13.6 million goodwill impairment
- Like-for-like sales growth of 13.0% for Universal Store and 25.5% for Perfect Stranger
- Group operates 111 stores with ongoing expansion plans
- Final dividend declared at 16.5 cents per share, supported by strong cash flow
Strong Sales Momentum and Store Expansion
Universal Store Holdings Limited (ASX – UNI) has reported a solid financial performance for the year ended 30 June 2025, with revenue climbing 15.5% to $333.3 million. This growth was underpinned by robust like-for-like sales increases of 13.0% for its flagship Universal Store brand and an impressive 25.5% for its Perfect Stranger retail format. The company also opened 12 new stores during the year, expanding its footprint to 111 stores nationwide.
The group’s strategy of delivering on-trend, occasion wear to a discerning 16-35 year-old customer base appears to be resonating well, as evidenced by the sustained sales momentum and successful rollout of new stores. The Perfect Stranger brand, in particular, showed strong growth, supported by elevated store design and a premium shopping experience.
Profitability and Goodwill Impairment
Underlying earnings before interest and tax (EBIT) rose 15.9% to $54.6 million, reflecting operational discipline and margin improvements. However, statutory EBIT was tempered by a $13.6 million impairment of goodwill related to the Cheap Thrills Cycles (CTC) segment, which faced challenges in its wholesale channel. The CTC business experienced a decline in wholesale sales due to shifts in retail partner strategies and deteriorating sales in some accounts, though its retail channel and Worship brand continued to perform well.
The goodwill impairment highlights the structural volatility in the wholesale market and reinforces the group’s strategic pivot towards growing its direct-to-consumer retail and online channels for CTC. Management remains confident in unlocking scalable retail formats under the THRILLS brand and has onboarded new leadership to drive this transformation.
Financial Position and Dividend
Universal Store Holdings ended the year with a net cash position of $17.2 million, up from $14.3 million in the prior year, supported by strong operating cash flow of $98.0 million. The group fully repaid its $15 million term loan during the year and maintained significant headroom against banking covenants.
Reflecting its solid cash generation and financial strength, the board declared a final fully franked dividend of 16.5 cents per share, payable on 25 September 2025. This dividend sits at the higher end of the company’s payout policy range of 60% to 80% of underlying net profit after tax.
Sustainability and Strategic Investments
The group has made meaningful progress on its sustainability commitments, including achieving 100% reusable, recyclable, or compostable packaging for customer bags and mailers, and sourcing over 54% of cotton from certified sources. It is actively preparing for mandatory climate change reporting starting in FY27 and continues to invest in digital capabilities, such as new point-of-sale systems and human capital management platforms, to support future growth and operational efficiency.
Universal Store Holdings also remains focused on disciplined store network management, with plans to open four to six new Universal Store and Perfect Stranger stores in FY26, alongside refurbishments and relocations to enhance customer experience.
Outlook and Risks
While the group is well positioned for continued growth, it faces ongoing risks from retail market volatility, competition, and supply chain dependencies, particularly given its sourcing concentration in China. The CTC segment’s wholesale channel remains a key area of uncertainty, though management’s strategic focus on retail and online channels aims to mitigate this.
Overall, Universal Store Holdings’ FY25 results demonstrate resilience and adaptability in a challenging retail environment, supported by strong brands, engaged leadership, and a clear strategic roadmap.
Bottom Line?
Universal Store Holdings’ FY25 performance sets a solid foundation, but investors will watch closely how the group navigates wholesale channel headwinds and executes its retail growth strategy.
Questions in the middle?
- How will the CTC segment’s wholesale channel evolve amid ongoing structural shifts?
- What impact will new digital and point-of-sale investments have on operational efficiency and customer experience?
- Can the group sustain dividend payouts while funding its store expansion and sustainability initiatives?