Universal Store’s FY26 YTD Sales Surge 13.7% with 11 to 17 New Stores Planned

Strong Sales Momentum Across Brands

Universal Store Holdings Limited (ASX, UNI) has kicked off FY26 with encouraging sales growth, reporting a 13.7% increase in direct-to-customer sales over the first 17 weeks compared to the prior corresponding period. This growth is notable given the strong like-for-like sales base it is cycling from FY25, underscoring the company’s ability to sustain momentum in a competitive youth fashion market.

The company’s flagship Universal Store brand posted an 11.4% rise in total sales, with like-for-like sales up 7.7%. Perfect Stranger, the Group’s premium retail banner, delivered an impressive 40.5% surge in total sales, reflecting growing brand awareness and an enhanced in-store experience. Cheap Thrills Cycle also contributed with a 14.1% increase in total sales, driven by improvements in retail operations despite a decline in wholesale sales.

Strategic Store Expansion and Operational Investments

Universal Store Holdings remains firmly on track with its FY26 store rollout plan, targeting 11 to 17 new store openings. So far, four new stores have launched, including two Perfect Stranger outlets, one Universal Store, and one Cheap Thrills store, with four more scheduled before Christmas. The company is also managing store closures prudently, with one Universal Store temporarily closed for centre reconstruction and expected to reopen in FY27.

Management continues to invest in team capability and system upgrades, including a planned rollout of a new point-of-sale system in the second half of FY26. These investments aim to support the Group’s growth trajectory and succession planning, ensuring operational resilience as the business scales.

Margin Stability Amid Currency Challenges

Despite a weaker Australian dollar against the US dollar, the Group’s gross margin remains consistent with the second half of FY25. This stability is attributed to a disciplined pricing strategy and an improved product mix, particularly through the expansion of the Perfect Stranger retail format and strong category sales during the 2025 winter season.

However, the wholesale channel for Cheap Thrills Cycle has faced headwinds, with sales down 6.3% year-to-date due to tariff uncertainties affecting US exports and changes in key wholesale accounts. This channel represents less than 5% of total Group sales, limiting its overall impact.

Looking Ahead

CEO Alice Barbery expressed confidence in the Group’s positioning heading into the peak trading period, highlighting healthy inventory levels and a customer-centric approach. The company’s focus on on-trend private and third-party brands, combined with strategic store growth and operational enhancements, sets a solid foundation for continued performance in FY26.