• Group sales up 16.1% to $183.5 million
• Underlying EBIT up 14.9% to $35.4 million
• Underlying NPAT up 16.0% to $23.2 million
• Dividend increased 33.3% to 22.0 cps

Universal Store Holdings Limited (ASX: UNI), a specialty retailer of youth casual fashion apparel, has released its half year results for the period ended 31 December 2024 ('H1 FY25'). The Group delivered strong results, with underlying EBIT of $35.4 million (+14.9% versus pcp) and underlying NPAT of $23.2 million (+16.0% versus pcp). Total sales grew 16.1% to $183.5 million, driven by growth in the Universal Store (+17.2%), Perfect Stranger (+92.3%) and CTC direct to customer (+1.1%) channels. Gross profit margins expanded 90 basis points to 60.6%, due to increased private brand sales mix and disciplined pricing. The Group continues to invest in team capability to support future growth, with CODB increasing 170 basis points to 30.9% of sales. The company's store network expanded to 109 locations, with four new Universal Store, two new Perfect Stranger, and one new THRILLS store opened during the period. A $13.6 million CTC goodwill impairment charge was recognized due to a decline in the Wholesale channel. The Group remains confident in the long-term potential of the CTC business and has implemented initiatives to refine the retail concept.

The Group expects to achieve 9 to 15 new store openings in FY25, with 7 stores already opened in H1 and 5 confirmed for H2. The company is pursuing additional new store opportunities, focusing on long-term profitability.

The Group has delivered a strong start to H2 FY25, with DTC sales up 31.8% in weeks 27 to 34. The company will continue to focus on cost discipline and expanding its store network to support future growth.