Two listed retailers have escaped the impact of a decline in consumer spending that is rippling across the industry as households struggle with ongoing cost-of-living pressures.
Youth-focused Universal Store and online cosmetics retailer Adore Beauty released positive trading reports on Friday, pushing both share prices higher.
Universal Store – which also owns the fashion brands Perfect Stranger and Cheap Thrills Cycle – expects group sales of $288.5 million for the year to the end of June, an increase of 9.7 percent over the previous year's figure of $263.1 million.
Earnings before interest and taxes are expected to be between $46 million and $47 million, up from $40.4 million last year.
The positive momentum has continued in the new financial year: total sales in the first two weeks rose by more than 15 percent compared to the same period last year.
Alice Barbery, CEO of the Universal Store Group, expressed her delight at the significant increase in underlying EBIT compared to the previous year against the backdrop of the cost of living crisis, inflationary pressures and evolving market dynamics.
“These results underscore our commitment to customer-focused results and operational excellence,” she said in a statement.
“We have consistently focused on managing margins, optimizing inventory and controlling costs.”
As of June 30, the youth clothing retailer had 102 stores, including 80 Universal Store, 14 Perfect Stranger and eight Thrills.
Universal Store shares rose 5 percent to $5.735 as of 10 a.m. The youth clothing retailer will release its annual results on August 22.
Adore Beauty acquired Blue Mountains wellness brand iKOU at the end of June and reported a 7.4 percent year-on-year increase in sales, equivalent to $195.7 million. The company expects an EBITDA margin of between 2.2 and 2.5 percent.
The number of active customers increased by 1.6 percent to 814,000, while the number of returning customers increased by 5.8 percent to a record 519,000.
“Adore Beauty continues to generate revenue and experience active customer growth, even as cost of living pressures impact consumer sentiment and trading conditions generally,” said Tamalin Morton, CEO of Adore Beauty.
“Our solid performance in fiscal 2024 has validated the resilience of both our business and the beauty and personal care category. We remain focused on meeting customer needs while growing both revenue and profitability.”
Adore Beauty expects to complete the acquisition of iKOU by the end of this month and begin selling products on its platform in August.
Adore Beauty shares rose 5.2 percent to 91 cents at 10 a.m.