Universal Store Holdings lifted group direct-to-customer sales by 9.3 per cent in the first 17 weeks of FY27, with its Perfect Stranger banner posting a 36.8 per cent rise in total sales.
The ASX-listed youth fashion retailer reported the unaudited figures in a trading update this week. In the 17 weeks of October 25, total sales at the Universal Store banner rose 6.6 per cent, with like-for-like sales up 2.8 per cent against 7.7 per cent growth in the prior corresponding period. Perfect Stranger like-for-like sales grew 11.6 per cent, cycling 13.9 per cent growth.
Cheap Thrills Cycles (CTC) total sales rose 2.9 per cent, while like-for-like sales fell 0.7 per cent, cycling 2.3 per cent growth. CTC’s like-for-like figures cover direct-to-customer sales only and exclude wholesale.
“It has been a pleasing start to the year, with positive LFL growth in a challenging macroeconomic environment and against strong prior year comparatives,” outgoing group CEO Alice Barbery said.
“Gross margins remain robust with our disciplined pricing strategy and expansion of the PS retail format. The Group is well positioned heading into the peak trading period with healthy inventory and a customer centric mindset.”
Barbery, who announced her resignation earlier this year, will hand the group CEO role to incoming chief executive George Do.
Management noted customers continue to prioritise social interactions and occasions for wear, and are taking a considered approach to purchase decisions.
The company attributed Universal Store sales to its third-party and private brand assortments, and noted it was pleased with new store performance. Perfect Stranger’s growth reflects increasing brand awareness and a favourable category mix, with little to no discernible cannibalisation of nearby Universal Store sites, according to the update.
At CTC, in-store like-for-like sales grew 4.1 per cent, while online sales fell 8.8 per cent. The company has moved CTC’s marketing and digital reporting lines into the Universal Store team to drive operational improvements.
CTC’s wholesale channel remains challenged as it cycles discontinued USA exports and the closure of a small number of key retail accounts in late FY26. Wholesale represents around 4 per cent of total group sales, net of intercompany eliminations.
The group remains on track to open 16 to 20 new stores in FY27. Five have opened so far this financial year, comprising three Universal Store, one Perfect Stranger and one Thrills store. A further seven are set to open before Christmas, including four Universal Store, two Perfect Stranger and one Thrills store. One Universal Store site will also reopen in November after being temporarily closed in FY26.
The company currently has 19 holdover leases under negotiation.
Gross margin is benefiting from the expansion of the Perfect Stranger format, the company added, while a stronger comparative AUD/USD exchange rate is offsetting higher transport costs.
The group implemented a new point of sale system in the first quarter of FY27, and will roll out a new warehouse management system later in the financial year, after the peak trading period.
Universal Store Holdings operates 128 stores across Australia, trading the Universal Store, Perfect Stranger, Thrills and Worship brands.