25 Aug 2021

UNI FY21 Results Announcement

Uni v er sal Store H oldi ngs Limi ted A BN 94 628 8 36 484 Unit 6 2 Jenne r S t reet, Nundah, Qld 4012 p: 07 3368 6500 f: 07 3368 6516 e: mail@universalstore.com.au ASX UNI 2 5 8 21 Brisbane, 2 5 A ug ust 2021 UNIVERSAL STORE DELIV ER S STRONG FY 21 RESU LT F Y21 Highlig hts : • S ale s up 36.1 % to $ 210.8 m o Group LFL s ales growth of 28 .5 % ( LFL B&M stores up 21.8 % ) o Onli ne sale s up 90.3% representing 12 .2 % of total sales • Gros s profit $ up 4 1 . 4 % to $ 123. 9 m • Gross profit margin % up 2 1 0 bp s to 5 8.7 % • U nderlying EBIT margin of 20.9 % up approx imately 5 6 0 basis points on pcp • Statutory NPAT up 90 % to $ 24 . 4 m • Underlying NPA T up 87.7 % to $ 3 0 .4 m • Net ca sh of $ 1 8 .6 m at period e nd • Underly ing earning s per share (EPS) to 41. 5 cent s • F inal divide nd of 10 .5 cent s per s ha re (f ully franked ) Overview Universal Store H oldings Limited ( ‘ Universal S t o re ’ ) , ( AS X :UNI ) toda y announ ce d it s results f or FY21 . Univers al Store traded strong l y throughout F Y 21 generat ing significant growth in both re venue and profit. This result was delivered despite the ongoing disruption to the business arising from the COVID - 1 9 pandemic . S ales gre w to $210.8 m in FY 21, an increase of 36.1 % on th e p r ior year . Overall, lik e for like sales across the company rose 28.5 %, with first half growth of 26.5 % and second half growth of 31.7 %. Online sa les grew 90 . 3 % which is a result of a significan t inve s tment in our online capabilitie s during COVID - 1 9 i n FY 2 0 , wh ich includ ed the i mplementati on of ship - from - s tore and cli ck & collect. Gro ss profit is up 41. 4 % fr om $ 87.6 m in FY 2 0 to $ 12 3. 9 m FY2 1 , dr iven by strong customer demand for our private brand s , along with expansio n of our men’s pri vate brand offering and accelerat ed direct so urcing in v arious women’s product categories of our private brands . Commenti ng on the res u lts, Universal Store CEO, Alice B arbery said; “ In spite of the many challenges encou ntered d uri ng F Y21 , inclu ding store closure s in Melbo urne from A ugust t o Oct o ber, the re s ul t s we have de livered are outstanding and well ahead o f F Y20 . This high lights the ability of our team to operate in what h as bee n an unpredic table t rading environment . Uni v er sal Store H oldi ngs Limi ted A BN 94 628 8 36 484 Unit 6 2 Jenne r S t reet, Nundah, Qld 4012 p: 07 3368 6500 f: 07 3368 6516 e: mail@universalstore.com.au ASX UNI 2 5 8 21 I am very proud of wha t our team has been able to manage and achieve , includin g our s u cce ssf ul IPO in November 2020 . This has undoubtedly bee n the most cha ll enging and rewarding operating environment our C ompany has seen in the last decade. We h av e continued t o focus on deliv ering an improved top line result by execut ing our strat egic pri ori ties as well as responding to the u nique trading e nvironments created by COVID - 19. The step of making our full range of inventory available to online shoppers through the launch of s hip fr om s tore ( ‘ SFS ’ ) was instru mental in driving the ~90% sa les g row th from our webstore, and a near doubling of the contribution margin from our online channel in FY21 . Critically, this also delivers increas ed customer satisfaction, and is a key example of ho w we can use our stores to support our online channel an d vic e v ers a. As the online channel becomes a more material component of both our sales an d profitability, we will continue to invest in new capabilities and capacit y to further driv e this channel over the coming yea rs. Our business model is omni - channe l, and we a r e ultimately ‘ channel agnostic ’ and support our customer to browse and tra nsact with via a channel that suits t hem . W e stand ready to deliv er our range and service across both our channels . W e support both sale s channels with a large set of gro up assets , t eam and capabil iti es , which gives us both operating efficiencies and scale advantages. This business model is fundam e ntal to our capacity t o deliver attractive economics and growth from both the underly ing channels and the business as a whole . This model i s also a key source of d iff erentiation and competitive advanta ge . The o mni - channel customer who shops both our chann e ls is extremely valuab le to us and growing strongly in number . The produ ct team remain s nimble to changing market conditions continuing t o curate and range re levant on - trend products . The focus of our product and operations team s o f being ‘ close to mark e t and customer ’ , buyin g late in season, maintaining collaborative supplier relatio nship s , and micro allocati ng our stock to sto re and chann el has never been mor e cruc ial and valuable than in FY21 . Our culture and the hustl e of o ur team remain the building blocks of our C ompany , and they have stood up in extreme circumstances . The agilit y and resilience that these fundamentals give us has been integral to deliveri ng our results ” . Strong cash flow and balance sheet The outstanding earnings result for F Y21 al so converted to underlying operating ca sh flow generation of $ 3 2 . 5 m . The balance sh e et is very st rong with net cash o f $ 18.6 m a t year end . D ividend The Board ha ve decl ared a final d iv i dend o f 10 .5 c ents p er sha re (fully franked) p a yable on 29 S eptember 2021 . This ta kes t he total divid end paid to shareholder s as a listed entity or si nce l isting to 15.5 cen ts pe r share. Stor e G ro w th The compan y c urrently has 6 8 s tores and is targeting a network of 1 00+ s tores ac ross Australia an d N ew Zealand over the l ong er term . Two new stores were opened during the financial year and one has been opened since June 2021 . Seven new stores are expec ted be opene d during the Uni v er sal Store H oldi ngs Limi ted A BN 94 628 8 36 484 Unit 6 2 Jenne r S t reet, Nundah, Qld 4012 p: 07 3368 6500 f: 07 3368 6516 e: mail@universalstore.com.au ASX UNI 2 5 8 21 first half of FY22 . A dditional stores a re e xpe c ted to o pen the second h alf o f FY22 . Further , we expect to relo cate and expand two store s du ring the same period . S u pply Chain O ur r eview has been compl eted and we ar e currently fin alis ing agre e ments and antic ipate that t he new distribu tio n cent re will be operational in the first hal f of the next financial year . T his new facility w ill have t he flexibility and c ap acity to support business g rowth during the next 5 – 1 0 years . Ou tlook We continue to execu te on our strategic priorities in th is u nique and v olatile trading environment . Our sales results onl ine and in ‘ open mark ets ’ give us confide nce that our c ustomers ha ve both the capacity and appetite to shop with us when circumstances p ermit . Sales for t he first e ight weeks o f FY22 are down 20 .7 % compared to the sam e period last y ear which re flect s the c urrent state of lock do w n . LFL sales across this period are down j ust 0.4% despite the fact that we are cycling elevated levels of LFL sales growth of 24.5 % in the prior co rresponding period. Given the uncertainty regarding trade restrictio ns and potential for ongoing lockdowns, we do not consider it appropriate to provide FY22 guidance at this time . We a re managing our costs carefully in markets where sto res are closed. Our inventor y is well balance d a nd we are ready to trade all stores whe n p ossible . A uthorised for release by t he Board of Directors of Universal Stor e Hold ings Limited . Fo r more info r ma tion, please c o ntact: investor relations@un iversals tore.com .au Alice B ar bery C h ief Executive O ff ice r +61 7 3368 6503 ABOUT UNIVERSAL STOR E U niversal Store is a specialty retai ler o f youth casual apparel that op erates 67 physic al sto res ac ross Au stra lia and a fast - g r o wing on line store. The Compa ny's strat egy is to deliver a fre qu en tly changing a nd c are fully curated selection of on - trend app are l products to a target 16 – 35 - year - old fa shion focused customer. Univer sal Store seeks to pro vide a high l evel of custom er ser v i ce, con sistent pric e proposit ion and a welcomi ng and eng ag ing st or e environment. It off ers a diversity of brands and styles in or der to cater to the constantly evol ving and widely varied tastes and t rends obse rved i n the youth apparel mar ket .

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