The Universal Store group has recorded a 19.3 per cent lift in direct-to-consumer (DTC) sales in the first 17 weeks of FY25, driven by a triple-digit boom at Perfect Stranger.
Perfect Stranger sales are up by 111.1 per cent, with like-for-like sales up 29.9 per cent, cycling a lift of 4.6 per cent.
Universal Store came second in the sales surge, with total revenue up 15.5 per cent. Like-for-like sales were up 13.8 per cent at the streetwear brand, cycling a fall of 7 per cent.
At its Thrills subsidiary, sales were up 7.4 per cent in the first 17 weeks of FY25, with like-for-like sales up 12.3 per cent and cycling a lift of 6.3 per cent.
Despite the DTC lift for Thrills, wholesale sales were down in the new financial year to September by 16.8 per cent. Universal Store added that the Australian wholesale customer base (excluding its Universal Store brand) continues to be volatile.
“We’re pleased with the start of FY25 which has seen strong sales growth while maintaining the robust gross margins achieved in H2 FY24,” CEO Alice Barbery said. “The team continue to deliver a customer centric experience and product range with a focus on speed and nimbleness.
“We continue to focus on cost discipline as we build our team and system capability to support future growth.”
Universal Store is reportedly trading well across both bricks-and-mortar and online, according to the group.
“Sales growth is strong across both the men's and women's categories with an increased private brand sales mix driven by Neovision, Luck & Trouble and Worship,” the group reported. “We anticipate LFL growth to moderate as the year progresses and we cycle stronger prior year trading comparatives.
Perfect Stranger’s sales growth is driven by a growing customer base reflecting refined product ranging. The group confirmed that all the brand’s stores are profitable and online sales are accelerating.
Looking ahead, Universal Store group is anticipating to open around 9 to 15 new stores in FY25. The group has opened three new stores financial year-to-date, including two Perfect Stranger stores and one Universal Store site.
In addition, one temporary CTC store has been opened.
Four additional stores are currently scheduled to open pre-Christmas, being three Universal Store locations and one Thrills store.
“The company continues to be prudent in store selection as well as having twelve holdover leases currently under negotiation,” the group added.
“Group margin benefits achieved in H2 FY24 have been maintained into FY25 YTD, with strong private brand performance, led by Neovision.
“Cost of Doing Business % of sales is ~1% above prior year due to underlying cost inflation and investment in team capability.
“The Company has invested in team capability to support planned growth and implementation of its new point of sale (“POS”), Human Capital Management (“HCM”) and Enterprise Resource Planning (“ERP”) systems.”