• Group sales up 14.2% to $209.6 million
• Underlying EBIT up 23.2% to $43.6 million
• Underlying NPAT up 22.0% to $28.3 million
• Interim dividend up 18.1% to 26.0 cps

Universal Store Holdings Ltd (ASX: UNI) has reported a solid first half result for FY26, with strong sales growth, margin expansion, and double-digit increases in underlying earnings. Group sales grew 14.2% to $209.6 million, driven by strong performances across the Universal Store (+11.9%), Perfect Stranger (+41.5%), and CTC (+4.8%) brands. Gross profit margins expanded 150 basis points to 62.1%, reflecting the company's focus on product assortment, pricing, and inventory management. Underlying EBIT increased 23.2% to $43.6 million, while underlying NPAT grew 22.0% to $28.3 million. The company declared a fully franked interim dividend of 26.0 cents per share, up 18.1% on the prior corresponding period. Universal Store continues to invest in its team, systems, and new store openings to support future growth, with 8 new stores opened in H1 FY26 and a further 5 planned for H2. Management noted the company's disciplined approach to managing foreign exchange and pricing risks, as well as the continued strength of the youth fashion market.

The company expects continued volatility in the CTC wholesale channel, which represents less than 5% of group sales. Management continues to pursue new store opportunities, with a target of 11-17 new stores to be opened in FY26.

The company remains focused on growing its premium fashion brands and retail formats, targeting fashion-focused customers. Management expects continued volatility in the CTC wholesale channel but remains disciplined in managing foreign exchange and pricing risks.