Universal Store Holdings: FY23 earnings - Dress appropriately

About the author:

Author name:

By Alexander Mees

Job title:

Co-Head of Research and Senior Analyst

Date posted:

25 August 2023, 9:00 AM

Sectors Covered:

Gaming and Retail

• On an underlying basis, Universal Store's (ASX:UNI) FY23 EBIT was 2% above our forecast and in line with guidance. Group LFLs were better than expected. LFL sales in the first few weeks of FY24 were weak, but were against strong comps.
• We have lowered our EBIT estimates by 9% in FY24 and 3% in FY25 as we take a more cautious view on sales and margins. We note these changes bring us closer in line with consensus.
• UNI’s attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E. We reiterate our ADD rating and increase our target price to (login to view).

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