Listed retailers Universal Store, Adore Beauty buck wider consumer pullback trend
![As at the end of June, the youth apparel retailer had 102 store locations, including 80 Universal Store sites.](https://images.thewest.com.au/publication/C-15406655/38ad34cb44606b44b7bb1343f811846f6638d22e-16x9-x0y168w3000h1688.jpg?imwidth=810&impolicy=wan_v3)
Two listed retailers have dodged the impact of a pullback in consumer spending being felt by the wider industry as households grapple with persistent cost-of-living pressures.
Youth-focused Universal Store and online cosmetics retailer Adore Beauty released positive trading updates on Friday, which sent both share prices up.
Universal Store — which also owns fashion brands Perfect Stranger and Cheap Thrills Cycle — expects group sales to hit $288.5 million in the year to the end of June, up 9.7 per cent on the previous year’s $263.1m.
Underlying earnings before interest and tax is expected to be in the range of $46m to $47m, up from last year’s $40.4m.
The positive momentum has continued into the new the financial year, with total sales for the first two weeks up more than 15 per cent on the prior corresponding period.
Universal Store group chief executive Alice Barbery said it was pleased to deliver a significant growth in underlying EBIT compared with last year amid a backdrop of a cost-of-living crisis, inflationary pressures and evolving market dynamics.
“These results underscore our commitment to customer led outcomes and operational excellence,” she said in a statement.
“We’ve maintained a steadfast focus on managing margins, optimising inventory and controlling costs.”
As at June 30, the youth apparel retailer had 102 store locations, comprising 80 Universal Store, 14 Perfect Stranger, and eight Thrills.
Universal Store shares are up 5 per cent to $5.735 at 10am. The youth apparel retailer will release its full-year results on August 22.
Fresh from its acquisition of Blue Mountains wellness brand iKOU at the end of June, Adore Beauty reported full-year revenue grew 7.4 per cent on the prior corresponding to $195.7m. It expects EBITDA margin to hit between 2.2 per cent to 2.5 per cent.
Active customers grew 1.6 per cent to 814,000, while returning customers grew 5.8 per cent to a record 519,000.
“Adore Beauty continues to deliver revenue and active customer growth, even as cost-of-living pressures impact consumer sentiment and trading conditions more broadly,” Adore Beauty chief executive Tamalin Morton said.
“Our solid performance over FY24 has reaffirmed the resilience of both our business and the beauty and personal care category, and we continue to focus on meeting customer needs, while growing both sales and profitability.”
Adore Beauty is set to complete the iKOU acquisition at the end of this month, with the first products sold on its platform in August.
Shares in Adore Beauty are up 5.2 per cent to 91¢ at 10am.
Get the latest news from thewest.com.au in your inbox.
Sign up for our emails