Universal Store (ASX:UNI) reports 9.7% FY24 sales growth to $288.5M

Universal Store Holdings reported a 9.7% increase in sales to $288.5 million and a 16.6% rise in underlying EBIT, reaching $47.1 million.

The performance was attributed to improved gross margins, disciplined cost control, and a strong rebound in the second half of the fiscal year.

The Universal Store retail format saw a reversal in like-for-like sales from a decline of 5.4% in the first half to an increase of 6.6% in the second half.

CEO Alice Barbery commented, "Refining our product range and focusing on customer demands in the second half were key to our improved sales performance."

Universal Store led by its experienced management team, continues to adapt to changing market conditions.

The emerging Perfect Stranger retail format also demonstrated remarkable growth, with sales up 56.2% compared to the previous period.

The number of Perfect Stranger stores increased to 14 by the end of June, confirming the brand's expanding footprint.

Additionally, like-for-like sales for Perfect Stranger rose 11.5% in the second half.

CTC brands, including THRILLS and Worship, maintained their solid performance in the US and other premium accounts.

Focusing on direct-to-customer channels, the CTC division is showing encouraging signs of recovery and expansion, despite challenges in key wholesale accounts.

The company reported a final dividend of 19 cents per share, resulting in a total FY24 dividend of 35.5 cents per share, up 61.4% from the prior period.

With a net cash position of $14.3 million at year-end, Universal Store Holdings remains committed to sustainable growth and value creation for its shareholders.

The company plans to open four to six new Universal Store sites, four to six Perfect Stranger stores, and one to three new THRILLS stores.