• Record H1 total sales of $183.5 million (+16.1% vs pcp)
• Universal Store 6-year average LFL sales growth of +8.5%
• Underlying EBIT of $35.4 million, up $4.6 million vs pcp (+14.9%)

Universal Store Holdings Ltd reported strong H1 FY25 results, with record sales of $183.5 million (+16.1% vs pcp) and underlying EBIT of $35.4 million, up 14.9% vs pcp. The group's Universal Store (US) format delivered LFL sales growth of 14.4%, while the Perfect Stranger (PS) retail format achieved 25.3% LFL growth. Online sales grew 12.6% to $25.2 million, representing 13.7% of total sales. Gross margins expanded 90bps to 60.6% despite continued industry discounting, driven by increased private brand penetration and synergies from the CTC acquisition. CODB increased 170bps to 30.9% due to inflation, investment in team capability, and higher bonus accruals. The group opened 7 new stores in H1 FY25, taking the total network to 109 stores (excluding webstores). The group's CTC business saw wholesale sales decline 16.4% due to market conditions, leading to a $13.6 million goodwill impairment charge. The balance sheet remains strong, with $37.7 million in net cash at 31 December 2024.

The group expects to open 1 new Universal Store in Q4 FY25 and is exploring further new store opportunities. The group has also confirmed 3 new Perfect Stranger stores for opening in Q4 FY25.