Youth apparel and footwear spending intentions have hit an all-time high among Australian consumers, according to new UBS research, with the investment bank naming Universal Store and Hallenstein Glassons as its top publicly-listed picks to capitalise on the trend.
UBS Evidence Lab surveyed approximately 1,000 Australian adults between May 11 and May 22 as part of its 28th quarterly consumer survey, cutting the data for 18- to 34-year-olds to evaluate the spending intentions of Australia's approximately 7.5 million youth consumers, who represent around 28 per cent of the population.
The bank found youth consumer spending intentions were again at an all-time high, driven this quarter by non-essential categories. Apparel and footwear spending intentions were higher both quarter-on-quarter and year-on-year, and remained above the average consumer — a result UBS said underpinned its confidence in Universal Store and Hallenstein Glassons to continue gaining market share.
The optimism among youth consumers is being driven by a relatively favourable economic position. UBS found youth respondents remained more optimistic on their financial outlook over the next 12 months compared to all consumers, with income growth, income stability, and job security cited as the key drivers.
Income expectations also increased quarter-on-quarter and year-on-year, and remained above the broader consumer average. Cost of living pressures were mixed — youth consumers reported lower impacts from food, utilities and rent, though were more exposed to interest rates than the average consumer. Selected respondents also reported financial support from family for living expenses and housing.
The findings provide a constructive backdrop for both Universal Store and Hallenstein Glassons, which have each reported strong recent trading on the back of their youth-focused positioning.
Universal Store, which generally targets a customer base of 15 to 25 year-olds, has grown gross profit by 19 per cent since FY22, with group revenue up 15.5 per cent to $333 million in FY25, and gross profit margin up 100 basis points to 61.1 per cent. The group, which also manages the Thrills and Perfect Stranger retail brands, entered the ASX 300 following its FY25 result.
Hallenstein Glassons, which operates the Glassons womenswear and Hallensteins menswear brands, has also been on a strong trajectory in Australia. Glassons' Australian sales rose 15.3 per cent to NZ$251.5 million in FY25, driving net profit after tax in Australia up 16.1 per cent to NZ$34.2 million.
For the six months to February 1, 2026, the group's unaudited net profit before tax was expected to come in between NZ$39.3 million and NZ$39.8 million, up 32.1 per cent on the prior year. The group operates over 130 stores across Australia and New Zealand, with both brands positioned in the lower-price market.
UBS maintains a buy rating on both Universal Store and Hallenstein Glassons, describing them as market share winners within a broader youth consumer cohort it views as a preferred exposure given its spending intentions remain consistently above the average Australian consumer.
But not all are winners in UBS’ expectations, with the broker feeling neutral on other apparel and footwear stocks – namely Accent Group and Super Retail Group. Accent manages around two dozen brands, including Hoka, Hype DC, The Athlete’s Foot and Sports Direct, either under license, franchise or full ownership. Super Retail Group owns Rebel, Macpac, BCF and Supercheap Auto.
UBS shared that 22 per cent of Accent’s stores in FY25 were youth focused banners. However, UBS doesn’t expect Accent to move its share price over the next twelve months, which currently sits just above 70 cents.
As for Super Retail Group, the broker expects slightly modest lift in the company’s share price, estimating that 33 per cent of Rebel’s sales in FY25 were from youth consumers.
Youth spending tailwinds are also projected to hit quick service restaurants, travel, furniture and consumer electronics and online. With online in particular, UBS declared this is an improving space, with higher quarter-on-quarter and year-on-year, and still above the average consumer.
“Amazon, Kmart and Big W [are the] most preferred online retailers for youth consumers,” the broker concluded.
