Universal Store Holdings Ltd (ASX:UNI)
A$ 7.83 0.1 (1.29%) Market Cap: 600.72 Mil Enterprise Value: 647.68 Mil PE Ratio: 17.51 PB Ratio: 3.94 GF Score: 63/100

Full Year 2024 Universal Store Holdings Ltd Earnings Call Transcript

Aug 22, 2024 / 12:15AM GMT
Release Date Price: A$7.05 (+11.20%)

Key Points

Positve
  • Universal Store Holdings Ltd (ASX:UNI) achieved a 9.7% sales growth to $288.5 million, with underlying EBIT up 16.6% to $47.1 million.
  • The company reported a strong recovery in the second half, with like-for-like sales growth of 6.6%, a significant improvement from a negative 5.4% in the first half.
  • Perfect Stranger expanded to 14 stores with full-year like-for-like sales growth of 7.3%, and second-half sales growth of 11.5%.
  • The company maintained a healthy balance sheet, ending the year with a net cash position of $14.3 million, allowing for an increased dividend of $0.19 per share.
  • Online sales remained robust at $40.9 million, up 10.3%, accounting for 14.2% of total sales.
Negative
  • The first half of the year saw cautious customer spending due to rising cost of living, impacting overall sales performance.
  • CTC's gross margin was adversely affected by foreign exchange movements and a shift towards lower-margin wholesale accounts.
  • The cost of doing business increased due to higher employee incentives and strategic project investments, adding $4.9 million in costs from the CTC acquisition.
  • Inventory levels increased to $29.9 million, driven by new stores and higher stock levels in the distribution center.
  • The company faces ongoing challenges in the wholesale channel, with substantial shifts expected to continue through FY25.
Sam Wells
NWR Communications - Investor Relations

Good morning, everyone, and welcome to the Universal Store full year FY24 results call. My name is Sam Wells from NWR. And joining me from the company today is Managing Director and CEO, Alice Barbery, as well as outgoing CFO, Renee Jones. Also joining Alice and Renee is Universal Store's newly appointed CFO, of Ethan Orsini.

Following a summary of the results released to the market this morning, investors and research analysts will have an opportunity to ask questions of the management team. There will be a choice of two options. First, analyst and investors can either raise your hand via Zoom should you wish to ask verbal questions of the management team or you can submit a written question via the Q&A function at the bottom of your screen throughout the call.

We will endeavor to get to the majority of all questions asked, in some cases, combining questions on the same or similar topic. For the analysts ask verbal questions, we kindly ask that you please limit yourself to one question during the live session today.

Thank

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