Australian retail group Universal Store, which also manages the Cheap Thrills Cycles and Perfect Stranger retailers, has reported a statutory net profit after tax jump of 150 per cent in the first half of FY26.
The jump up is driven by a return to profit for the Thrills business in the same period, with the brand’s NPAT hitting $1.55 million on $23.2 million in total sales. The brand’s NPAT for the first half of FY26 is up dramatically from a $12.35 million loss in the first half of FY25, driven down by a goodwill impairment of the Thrills business of $13.6 million during that period.
Excluding the impairment charge, Universal Store’s group underlying NPAT grew by 22 per cent to $28.3 million.
The growth in profit came alongside an ongoing surge in total sales. Group sales grew 14.2 per cent to $209.6 million. The Universal Store retail brand reported a revenue lift of 11.9 per cent to $174.8 million, with like-for-like sales up 8.7 per cent.
Perfect Stranger sales lifted by 41.5 per cent to $17.8 million, with its like-for-like sales up 14.8 per cent.
Meanwhile, Thrills sales lifted 4.8 per cent, driven by its direct-to-consumer channel up 25.5 per cent, but dragged down by a 2.4 per cent slip in wholesale.
These metrics added to a 150 basis point lift in the group’s gross profit margin, which now sits at 62.1 per cent.
Group CEO Alice Barbery called it a solid first half result.
“This growth reflects the team’s continued excellence in providing our customers with on-trend products for their occasions, a service-oriented experience and engaging communication,” Barbery said. “We note that the youth fashion customer remains discerning, choosing to spend on quality, on-trend clothing from brands they love.
“The group continues to focus on cost discipline as we build our team and system capability to support our future growth.”
Universal Store’s like-for-like sales growth of 8.7 per cent was reportedly buoyed by average transaction value. All its private label brands performed well, with Neovision, Perfect Stranger and Common Need remaining the top three brands within Universal Store. Neovision itself represented a 19 per cent sales mix contribution to Universal Store sales.
Online sales grew 6.3 per cent in the first half, and represented 12.9 per cent of total sales. Four new stores opened and there was one planned store closure due to shopping centre refurbishment, bringing its total to 118.
With Perfect Stranger, the overarching group has reportedly invested in resources to support its branding, marketing and product capabilities. “Management’s focus is on growing brand awareness and evolving the product range, focusing on quality and refined collections,” the company reported. Three new Perfect Stranger stores opened and one store was relocated during the period, bringing its total to 22.
Meanwhile, Thrills’ retail strategy, including the opening a new store to bring its total to nine, is progressing. This includes improvements in store execution, product curation and fast to market mindset. The group added that brand and product positioning has been aligned with historical brand values.
The decline in wholesale sales by 2.4 per cent is said to be driven by planned reductions to USA exports due to increased tariffs. Increase in third-party customer sales has offset a reduction in intercompany sales to Universal Store.
Collectively, the CTC brands – which includes both Thrills and Worship – represented around 9 per cent of Universal Store format sales versus around 12 per cent in the prior corresponding period.
The group also noted that its first half FY26 gross margin was 150 basis points higher than the same time in FY25, now at 46.8 per cent, reportedly due to a higher retail sales mix and improved price management.
In the second half of FY26 to date, the group’s DTC sales have continued to grow, up 13.5 per cent. Universal Store sales are up 11.4 per cent in this period, Perfect Stranger sales up 39 per cent and Thrills sales up 14.6 per cent.
The Thrills retail stores are driving most of its growth, with like-for-like sales here up 18 per cent. The brand’s online sales were down 31.7 per cent with reduced promotional clearance activity.
By the end of the full-year FY26, the group expects to have opened 13 stores, with five more expected in this half.
Management also highlighted the increase in interest rates and the strengthening AUD/USD exchange rate. “The group maintains a disciplined approach to hedging foreign currency risk and product pricing,” Universal Store reported. “Management expects continued volatility in CTC wholesale sales as H2 FY25 USA sales are cycled.”
The CTC wholesale channel represents less than 5 per cent of group sales, not including intercompany sales.