Universal Store Holdings (UNI) – Reinvesting for growth

Universal Store Holdings is a fashion and accessories retailer targeting the youth and young adult market, which operates through two divisions, Universal Store and Cheap Thrills Cycles. Universal Store Holdings was founded in 1999 and is based in Eagle Farm in Brisbane.

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Universal’s second half 2025 net profit after tax (NPAT) was approximately 2% below consensus expectations. However, the first half 2026 year-to-date trading update was a positive surprise, tracking about 7% ahead of consensus. Despite this, Ord Minnett cut its EPS forecasts for FY26–28 by 4–6% to reflect management’s guidance that sales comparisons will become more challenging in the remainder of FY26, and that Universal will continue to reinvest in the business, prioritising long-term growth over short-term profits. The company’s price-to-earnings ratio is in line with the average listed ASX retailer.

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With a $17 million net cash position, expected 10% per annum EPS growth over two years, and further market share opportunities as competitors exit, we retain a Accumulate rating on Universal. Our price target falls to $9.60 from $9.80 to reflect the EPS downgrades.