Universal Store Lifts FY26 Guidance as Sales Jump 14% on Perfect Stranger Surge
Universal Store lifts FY26 guidance as retail sales surge 14%
Universal Store Holdings Limited has upgraded its FY26 guidance following strong trading momentum, with Group retail sales climbing 14.0% across the first 43 weeks of the year. The Brisbane-based fashion retailer now expects FY26 sales of $368 million to $375 million and Underlying EBITA of $61.5 million to $64.5 million, representing growth of 11.5% and 15.4% respectively at the midpoint versus FY25 actuals of $333.3 million and $54.6 million. The update was delivered ahead of the company’s appearance at the 2026 Macquarie Australia Conference on 5 May 2026.
The revised guidance reflects accelerating performance across Universal Store’s core retail banners, with both the flagship Universal Store brand and the rapidly expanding Perfect Stranger format posting strengthening like-for-like (LFL) sales growth through the second half. Group CEO Alice Barbery attributed the results to resilient demand despite external headwinds.
Alice Barbery, Group CEO
“The Group’s YTD performance is very pleasing given current geopolitical and economic uncertainties. Despite these macro-economic conditions, we have not seen a material shift in sales trends across the Group in this period.”
The 15.4% uplift in underlying earnings at the midpoint outpaces sales growth, suggesting the company is capturing margin expansion or operational leverage as its store network matures. This comes against a backdrop of macro uncertainty, positioning Universal Store as a standout performer in the consumer discretionary sector.
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Brand-by-brand breakdown reveals accelerating momentum
The Group’s performance has been driven by differentiated growth across its three retail banners, with Perfect Stranger delivering standout expansion and Universal Store maintaining robust LFL growth on challenging prior year comparatives.
Universal Store maintains strong trajectory
The flagship Universal Store banner delivered 11.8% total sales growth and 8.5% LFL growth across the first 43 weeks of FY26, cycling a prior year LFL growth rate of 13.7%. The LFL performance demonstrates genuine demand strength despite already-elevated comparatives.
Momentum accelerated through the second half, with LFL growth reaching 8.1% in the first 17 weeks of H2 FY26 versus 7.1% in the initial seven weeks. The brand currently operates 87 stores, with four new openings delivered year-to-date, one planned closure, and an additional store scheduled to open in June 2026.
Perfect Stranger expansion drives outperformance
Perfect Stranger has emerged as the Group’s primary growth engine, posting 39.8% total sales growth and 12.9% LFL growth year-to-date whilst cycling a 26.7% prior year comparable. The LFL acceleration in H2 FY26 has been particularly pronounced, with growth of 10.0% in the first 17 weeks versus 4.9% in the initial seven weeks.
The brand has executed an aggressive network expansion strategy, opening seven new stores year-to-date to bring its footprint to 26 stores. Management confirmed no further Perfect Stranger openings are planned for the remainder of FY26, suggesting the focus will shift to bedding down the expanded network.
The CTC brand delivered mixed results, with physical retail posting 17.9% LFL growth but online sales declining -10% due to reduced promotional activity. Total CTC sales grew 14.5% with 3.8% LFL growth, cycling a 5.3% prior year comparable. The brand operates eight stores.
| Brand | Total Sales Growth (43 wks) | LFL Growth (43 wks) | LFL Cycling | Store Count |
|---|---|---|---|---|
| Universal Store | +11.8% | +8.5% | +13.7% | 87 |
| Perfect Stranger | +39.8% | +12.9% | +26.7% | 26 |
| CTC | +14.5% | +3.8% | +5.3% | 8 |
What is like-for-like sales growth and why does it matter?
Like-for-like (LFL) sales growth measures revenue performance from stores that have been open for comparable periods in both the current and prior year. It strips out the impact of new store openings, closures, and other network changes, isolating the performance of the existing store base.
Investors monitor this metric closely because it reveals the quality of organic growth. A retailer can grow total sales simply by opening more stores, but LFL growth demonstrates whether existing stores are attracting more customers, selling more products per visit, or achieving higher prices. Strong LFL growth indicates genuine demand strength and pricing power rather than growth manufactured through network expansion.
In Universal Store’s case, the 8.5% LFL growth at Universal Store and 12.9% at Perfect Stranger signal that existing stores are trading well, not merely benefiting from the addition of new locations. Importantly, these gains are being delivered whilst cycling already strong prior year comparatives of 13.7% and 26.7% respectively. LFL growth above 8% on top of double-digit prior year growth is a signal of sustained demand strength and pricing discipline in a competitive retail environment.
CTC brand navigating wholesale headwinds
The CTC business has delivered contrasting performance across its retail and wholesale channels, prompting a reassessment of the brand’s intangible asset carrying value. While CTC’s physical stores achieved 17.9% LFL growth year-to-date, online sales declined -10% due to reduced discounting and promotional activity. Total CTC sales grew 14.5% with 3.8% LFL growth, cycling a 5.3% prior year comparable.
The wholesale channel has deteriorated through H2 FY26, driven by the closure of key third-party customer retail stores and reduced intercompany sales to Universal Store. Management has characterised the wholesale challenges as structural and unlikely to improve in the near term. However, the wholesale channel represents less than 5% of Group sales net of intercompany eliminations, limiting the earnings impact.
As a result of the wholesale deterioration, the Group intends to recognise a non-cash impairment of CTC intangible assets of approximately $24 million. This charge will be excluded from underlying earnings. The impairment reflects a reassessment of the carrying value of CTC’s brand and customer relationship intangibles following the channel downturn.
While the $24 million impairment is a headline negative, it represents an accounting adjustment rather than a cash outflow. The core CTC retail strategy continues to perform strongly, with physical store LFL growth of 17.9% demonstrating the brand’s appeal to customers. Given wholesale’s immaterial contribution to Group earnings, the impairment is unlikely to materially alter the investment thesis.
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Growth runway and network expansion ahead
Universal Store operates 121 physical stores across Australia in addition to its online channels, with management executing a targeted network expansion strategy across its retail banners. The Perfect Stranger rollout has been the primary growth driver in FY26, with the network expanding to 26 stores over the year.
The current store footprint breaks down as follows:
- Universal Store: 87 stores (net +3 year-to-date, +1 more opening in June 2026)
- Perfect Stranger: 26 stores (+7 year-to-date)
- CTC: 8 stores
- Group total: 121 physical stores
Management has expressed confidence in the retail strategy, with additional initiatives planned to improve execution across the store network. The Perfect Stranger expansion runway remains substantial, with ample opportunity to grow the 26-store base towards the maturity of Universal Store’s 87-store footprint over the medium term.
The Perfect Stranger network expansion represents the Group’s primary organic growth lever. With the format delivering 12.9% LFL growth whilst cycling 26.7% prior year comparatives, and with only 26 stores against Universal Store’s 87, the runway for store count growth is significant. If Perfect Stranger can maintain its current productivity whilst scaling to even half of Universal Store’s network size, it would contribute materially to Group earnings growth over the coming years.
Management noted that FY26 results remain subject to external audit, with year-to-date information based on unaudited accounts. The upgraded guidance reflects confidence in sustained trading momentum through the final weeks of the financial year despite ongoing geopolitical and economic uncertainty.
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