TCF POST Report
BRISBANE, Australia — August 20, 2026 — Universal Store Holdings delivered a strong FY26 performance, led by robust growth across its core premium casual fashion retail businesses, particularly Universal Store and Perfect Stranger, while weakness in the wholesale channel of its THRILLS and Worship-led CTC segment weighed on overall results.
Group sales increased 12.9% to A$376.1 million, while underlying EBIT rose 17.2% to A$64.0 million. Gross profit margin improved 140 basis points to 62.5%, supported by stronger private-brand and third-party assortments, disciplined pricing and lower clearance sales.
Universal Store remains the main growth engine
The core Universal Store business generated A$313.3 million in FY26 sales, up 11.5%, with like-for-like sales increasing 8.1%. Growth was driven by both higher transactions and average transaction value, reflecting demand for on-trend, exclusive clothing and disciplined inventory management.
Universal Store’s gross profit margin increased 150 basis points, while underlying EBIT, including the Perfect Stranger contribution, reached A$63.6 million, up 19.7%. Private-label penetration remained high at 51% of sales, with Neovision, Common Need and Luck & Trouble identified as the top three brands within Universal Store.
The business operated 88 stores at the end of FY26 and opened five new locations during the year. Nine additional Universal Store stores are confirmed for FY27.
Perfect Stranger posts the strongest growth
Perfect Stranger was the standout growth format, with FY26 sales jumping 40.8% to A$35.9 million and like-for-like sales rising 13.0%. Higher average unit prices, supported by elevated product ranges, helped drive the improvement.
Online sales were particularly strong, increasing 49.5%, while the brand expanded its physical network to 26 stores after opening seven new locations in FY26. Six additional stores are confirmed for FY27.
Perfect Stranger’s growth also benefited the Group’s product mix, with management noting that expansion of the women’s fashion-focused format provides a favourable gross-profit contribution.
THRILLS and Worship face wholesale pressure
The weakest part of the portfolio was the CTC segment, comprising THRILLS, Worship and other emerging brands. Total CTC sales declined 9.2%, primarily because wholesale sales fell 18.9%.
Wholesale weakness reflected reduced U.S. exports, the closure of several key retail accounts and lower intercompany sales to Universal Store. CTC wholesale sales were A$23.7 million, compared with A$29.2 million a year earlier.
The deterioration was significant enough for Universal Store to recognise a A$23.8 million impairment of CTC goodwill and the THRILLS brand name. Statutory NPAT consequently fell 21.6% to A$18.2 million, despite underlying NPAT increasing 16.3% to A$40.5 million.
There were, however, positive signs in CTC’s direct-to-consumer business. Retail and online sales rose 16.9% to A$12.7 million, while retail like-for-like sales increased 4.2%. CTC’s gross profit margin improved 240 basis points to 45.3%, helped by a greater retail sales mix and improved price management.
In-store CTC like-for-like sales were particularly strong, increasing 17.8%, although online sales declined 10.5% as the business moved toward a lower promotional and clearance mix.
Apparel categories and brand mix
The presentation does not provide a detailed sales breakdown by individual apparel category such as tops, bottoms, footwear or accessories. It instead highlights premium casual fashion, women’s fashion and on-trend clothing as the core product areas.
Across the Group, management said customers continued to value quality, on-trend clothing, with product mix managed between private and third-party brands. Universal Store’s strategy remains centred on premium apparel, exclusive third-party products and private brands.
The strongest brand-level indicators therefore came from Universal Store’s private-brand portfolio and Perfect Stranger’s elevated women’s fashion ranges, while THRILLS and Worship faced pressure through wholesale distribution.
Regional performance
The results presentation does not provide a financial performance breakdown by Australian state or territory. It does, however, show a broad national store footprint across Queensland, New South Wales, Victoria, Western Australia, South Australia, Tasmania, the Australian Capital Territory and the Northern Territory.
The strongest geographic indicator in the results is therefore channel and format performance rather than regional sales. Perfect Stranger continued its national rollout, while Universal Store expanded its established network. By contrast, CTC’s international wholesale business weakened, particularly through reduced U.S. exports.
FY27 begins with continued momentum
The positive momentum has continued into the first seven weeks of FY27. Group direct-to-consumer sales were up 9.1% year on year. Universal Store sales increased 5.5%, with like-for-like sales up 2.9%; Perfect Stranger sales surged 45.8%, with like-for-like sales up 17.6%; and CTC DTC sales rose 10.1%, with like-for-like sales up 3.8%.
Management nevertheless expects continued weakness in CTC wholesale during FY27. The Group plans to open 16 to 20 stores, comprising nine to 10 Universal Store locations, six to eight Perfect Stranger stores and one to two THRILLS stores.
Overall, Universal Store’s FY26 results show a widening performance gap within its fashion portfolio: core retail apparel brands and formats are generating strong sales and margin growth, led by Perfect Stranger and Universal Store, while the THRILLS/Worship wholesale business remains under pressure. The Group’s continued investment in retail expansion, product curation and premium fashion positioning is aimed at shifting growth further toward its stronger direct-to-consumer businesses.
