Universal Store Holdings Limited (UNI) Earnings Call Transcript & Summary

Good morning, everyone, and welcome to the Universal Store Holdings First Half FY '26 Results Call. My name is Sam Wells from NWR Communications. And joining me from the company today is Managing Director and CEO, Alice Barbery; as well as CFO, Ethan Orsini. Following the summary of the results released to the market this morning, investors and research analysts will have an opportunity to ask questions. [Operator Instructions]. Thank you, and over to you, Alice.

Good morning. Thank you, Sam, and thank you all for joining us today. Ethan and I are pleased to report that our team has delivered strong FY'26 first-half results. I'll open with a quick summary of what's included in the pack before going through the individual slides to ensure that we have enough time to have plenty of time for good Q&A. Alongside the operational work of driving sales results, we've continued to shape the organization and invest in our future. Some examples are we have broadened the scope of our HR function with an appointment of a new GM, allowing our team members with high levels of specialist capability to focus more deeply on critical governance areas such as safety, payroll integrity, recruitment, and technology enablement. This is providing deeper insights into drivers of results to support continued strong execution across the business. We've also strengthened our approach to security across cyber and loss prevention and are currently working on a plan to reform our technology teams to drive higher standards of delivery. While we're not rushing to broadly adopt every new technology, including AI, we are preparing carefully and thoroughly for how these tools can be integrated in a way that enhances the customer experience. Our focus remains firmly on value, not technology for its own sake. The appointment of George Do as Divisional CEO, US&PS, has brought elevated and renewed energy. George, along with our Chief Customer Officer, heads of retail, design, buying and HR, bring strong, deeply aligned customer-first mindset, driving momentum behind new initiatives. At the same time, we're building an even stronger retail operations capability, deepening bench strength, refining leadership, as well as exploring ways to further enhance our warehouse management capabilities and systems to continue to drive efficiency and scale. The perfect Stranger business is benefiting from the deliberate investment in talented people focused exclusively on a single brand. This dedicated focus ensures that the brand's handprint, vision, and customer service continue to evolve with clarity and precision, sales growth being driven by on-trend differentiated products complemented with a premium pricing strategy, disciplined inventory management, and focused customer service. Meanwhile, our other vertical brands continue to thrive with our expert team ensuring each brand's unique identity remains clear and fully aligned with the customer. While wholesale remains challenging, our CTC team is developing stronger retail capability and a sharper, faster-to-market on-trend product focus. Retail bricks-and-mortar performance is showing encouraging growth as we map out the right time to accelerate this opportunity. Pleasingly, the actions we have taken are delivering encouraging results today and building a business that is well-positioned for the future. If you move to Slide 4, I'll call out a few highlights on this slide that Ethan will provide a bit more detail to later in the pack. The group delivered increased EBIT and GP improvement. Group sales up 14.2% over the prior corresponding period to $209.6 million. Underlying EBIT of $43.6 million, up 23.2%, and gross profit of 62.1%, up 150 basis points on PCP, reflecting improvements in both U.S. and CTC. Cost of doing business increased 50 basis points, driven by investment in our future growth in both team and systems capability. Universal Store sales, half 1 FY '26 sales, $174.8 million, up 11.9% on PCP. Like-for-like sales up 8.7%, which is growth in some challenging last year numbers of PCP up 14.4%. 4 new stores opened during the half, taking Universal Store to 87 physical stores. Perfect Stranger sales for the same period, $17.8 million, up 41.5% on PCP, 3 new stores opened for the half, and that brings us to a total of 22 stores. Like-for-like sales growth, up 14.8% on an elevated 25.3% like-for-like growth. CTC total sales of $23.2 million, up 4.8% on PCP, 1 new store opened, totaling 9 stores, and retail like-for-like sales increased 9.5%, reflecting growing confidence in our retail strategy as execution continues to strengthen across the network. Wholesale remains challenged, down 2.4% as we reduced exports to the U.S. and navigate softer trading conditions while actively building new retail partnerships within Australia to support a more sustainable platform. The group delivered a strong closing cash balance of $38.4 million with no borrowing outside of lease liability, and we're happy to announce a fully franked dividend of $0.26 per share. I think this slide is a really good recap slide for key measures. I'll call out a few additional highlights. Underlying NPAT, $28.3 million, up 22%; underlying EBIT of $43.6 million, up 23.2%. EPS, up 21.5% to $0.368. Slide 6. I'll take a moment to call out some of the trends highlighted on the graphs on this slide, notably a 5-year sales CAGR of 12.2% and our 6-year like-for-like sales growth of 7.9%. At December 31, the group had 118 physical retail stores. Perfect Stranger contributed 8.5% of total group sales compared to 6.9% in the prior corresponding half, and you'll see a 5-year underlying EBIT CAGR of 6.6%. Slide 7, reflecting the 3 businesses and their positions in the market. The group's core strategy is to scale and grow our premium fashion apparel brands and retail formats, delivering compelling customer experiences while capturing the use market and driving sustainable growth. Each of the 3 businesses has a distinct position in the market and a clear understanding of its stage of maturity as a retail-focused business. Universal Store, being the original retail business, Perfect Stranger emerging strongly, and THRILLS and Worship brands beginning to gain real retail momentum. We underpin our strategy with solid group capabilities across a number of functions, including data analytics, ESG, safety, IT, and POS, that seek to support the growth while retaining key design and marketing separation to ensure each brand retains a unique handprint and customer proposition. I'll now hand over to Ethan to give some more in-depth look at financials and run us through the updates.

Thank you, Alice, and good morning, everyone. It's my pleasure to walk you through our financial statements for the half, and I'll start with the group P&L. Half 1 sales of $209.6 million were up 14.2% on prior year. And pleasingly, all 3 retail banners were in growth. U.S. sales grew 11.9%, Perfect Stranger sales grew 41.5%, and CTC direct-to-customer sales grew 25.5%. CTC wholesale sales were down 2.4%, driven by lower U.S.A. export sales due to increased tariffs. Gross profit percent grew 150 basis points to 62.1% for the half. This growth was driven by strong private brands and third-party assortments. In addition, on-trend ranging in inventory management supported our disciplined pricing and a reduction in clearance sales mix on prior period. Cost of doing business increased 50 basis points to 31.4% as we continue to invest in team and system capability. An increased LTI and bonus expense has been recognized in line with stronger trading results. Underlying EBIT of $43.6 million was up 23.2% on prior period and represents a pleasing 20.8% of sales. We'll now take a look at the long-term sales trend. The graph on this slide shows the 6-year sales trend by business. From this, we can see the steady growth of Universal Store, which has a 6-year average like-for-like sales growth of 7.9%. We can also see the sales benefit of Perfect Strangers' growing network and strong like-for-like results. Perfect Stranger now represents 8.5% of total group sales. In addition, CTC has returned to sales growth driven by its retail network. Let's now take a deeper look at gross profit. The graph on the right shows the group's 6-year gross profit trend. Half 1 gross profit percent increased 150 basis points to 62.1% of sales. This increase was driven by 3 factors: the growth in PS and THRILLS retail formats has delivered a favorable gross profit mix to the group. Secondly, strong assortment ranking has supported disciplined pricing and full price sell-through. And thirdly, a reduced clearance sales mix on prior year was delivered due to strong inventory management. It should be noted that currency had a slightly adverse impact in the half. We'll now move to cost of doing business. The graph on the left shows the cost of doing business movement on prior year. From this, we can see 4 impacts. Wage inflation and investment in team capability resulted in a $3.4 million cost increase. New roles were added to support future growth and strategic projects. New stores and like-for-like growth resulted in an additional $4.7 million of costs relating to incremental store wages, rent and other variable costs. This growth fractalized cost of doing business as a percent of sales by 160 basis points. An increased LTR and bonus expense has been recognized in line with strong profitability for the half. The other cost of doing business line includes costs relating to our new point of sale, which is being implemented from quarter 4 FY '26. During the half, we renewed 2 leases with 3 currently in holdover. In aggregate, cash rental costs increased circa 5% on prior period. We will now move to the group balance sheet. The group continues to have a strong cash position with cash on hand of $38.4 million and no debt bank borrowings at the end of the half. Inventory of $33.5 million increased 18% on prior period due to a combination of increased store numbers and investing to support customer demand. The increase in other current liabilities reflects higher income tax payable associated with higher earnings and seasonal timing. Let's now look at the group cash flow. The group delivered robust cash flow from operations of GBP 72.1 million, up 3% on prior period. This increase was driven by strong profitability, partially offset by working capital timings. EBIT to cash conversion remains a solid 112% for the half. Half 1 CapEx relates to the opening of 8 new stores, store refurbishments, relocations, and IT hardware. We will now move to the business updates, starting with Universal Store. Half 1 sales of $174.8 million were up 11.9% on prior period, driven by strong like-for-like growth of 8.7% and new store openings. Gross profit percent increased a robust 190 basis points on prior year. This increase was driven by strong private brand and third-party assortments, favorable category mix, and disciplined price management. Private brand sales mix increased 55% versus 52% in prior period. This increase includes a strong activation of the Comedy brand. And Neovision continues to resonate with customers, contributing 19% of U.S. format sales. Underlying U.S.&PS EBIT was $41.3 million for the half, up $7.9 million or 23.7%. Four new stores were opened, and as planned, one store closed while the center undergoes refurbishment. U.S. ended the half with 87 physical stores. One store is confirmed to open in quarter 4 '26, and we continue to explore further opportunities. We anticipate 2 store relocations and 2 to 3 store refurbishments over the next 12 months. We'll now move on to Perfect Stranger. Perfect Stranger continues to deliver solid growth with half 1 sales of $17.8 million, up 41.5% on prior period. This increase was driven by new stores and like-for-like sales growth of 14.8%. Our focus remains on building brand awareness, range elevation, and expanding our store network. Due to the operational integration with Universal Store, a meaningful view of Perfect Stranger EBIT cannot be provided. Three new stores were opened for the half, bringing our total network to 22 physical stores. We have 4 stores confirmed to open in quarter 4 FY '26, with other opportunities being explored. I'll now move on to CTC. From a strategic perspective, the retail strategy is progressing well with improvements in store execution, product curation, and fast-to-market mindset. Brand positioning and product design has been realigned to historic brand values. From a trading perspective, direct-to-customer sales were $7.2 million for the half, which is up 25.5% on prior period. This growth was driven by new stores and robust like-for-like growth of 9.5%. Wholesale sales were down 2.4%, which includes the planned reduction in U.S.A. exports as a result of the increased tariffs. Increased third-party customer sales have offset reduced intercompany sales to Universal Store. The THRILLS and Worship brands represent circa 9% of Universal format sales. Gross profit percent was 46.8% for the half, which was up 150 basis points on prior period. This increase was driven by higher retail sales mix and improved price management. Underlying EBIT for the half was $2.3 million, up 25.2% on prior period, reflecting improved gross profit and cost efficiencies. One new store opened in the half, bringing our total store network to 9 physical stores. We continue to refine retail execution and store design to support future store rollout. I'll now hand back to Alice to provide a half 2 FY '26 trading update.

Thanks, Ethan. Group FY '26 to date direct-to-consumer sales are up 13.5% on the prior corresponding period, broken down by brand, all brands cycling strong comps in the PCP. Universal Store total sales growth up 11.4%, like-for-like growth up 7.1%. Perfect Stranger total sales growth up 39%, and like-for-like growth up 4.9%. CTC direct-to-consumer sales up 14.6% and like-for-like growth down 10.2%, and this is attributed to the drop in online, which is down 31.7%. Conversely, bricks-and-mortar stores had the highest growth in the group, up 18% in the PCP. Online was cycling elevated markdown activity from January '25. Our store network is on track to deliver previous market guidance of 11 to 17 stores in FY '26. Gross profit continues to have customer-led approach to product mix between third-party and private brands. And rest assured, management maintains focus on macro factors such as interest rate increases and Australian dollar exchange rates. We are taking a very disciplined approach to hedging foreign currency risk and product pricing. Cost of doing business is being managed carefully, while we still commit to making smart investments in team capability and systems implementation to ensure we are best placed to continue our growth trajectory. I want to thank the entire Uni Group team across our offices, our distribution centers, and our store network. The critical ingredient to driving our success has been the passionate teamwork and commitment to collaboration. I also want to recognize our Board for their continued support and guidance. And finally, thank you to our investors for your ongoing support. And thank you, Sam. We'll hand back to you and open for questions.

Thank you very much, Alice and Ethan. [Operator Instructions] There are a couple of pre-submitted questions. Firstly, just on gross margins. A couple of questions here. How sustainable is the gross margin expansion, particularly in the context of foreign exchange movements and the reliance on private brands like Neo?

Yes. So I guess the first thing to answer with that question will be we don't set explicit targets on private brand mix. So we're always led by the customer and what the customer demands. So as a result, we can't really comment on the private brand ratio. However, it is fair to say we continue to have really on-trend private brands that resonate with our customers. From a currency perspective, we called out some risk at the start of the year with currency. That's played through in the first half, but we are seeing a tailwind going into half 2. However, given the rate really only went up on the 20th of January, most of that benefit will really be in quarter 4. So we don't really see a material shift to margin in FY '26. But assuming the rate stays around $0.70, we'll see a benefit in FY '27.

And just sticking with private brands. Can you talk to the current landscape, really the fluidity of brands, and how you're navigating the brand cycles or life cycles, as inevitably the youth consumer preferences evolve?

Absolutely, data, data, data. We've been doing this for a very long time. We've had brands cycle in and out of the business for 15 years, and we watch that data like a hawk. And it's not on a monthly basis. It's not on a quarterly basis. It's on an absolute week-by-week basis that we check and see how brands are trending. Because we've got a close-to-market strategy, once we notice the brand is really starting to grow, we can hop on that train and go a bit deeper. And once we notice the brand is starting to soften, we can pull back very quickly and reduce. So that close-to-market strategy keeps us from being too exposed to fashion risk, but staying very close to customer and close to data. That's how we've done it for a long time, and we've done it, I think, brilliantly. That team is extraordinary.

Cost of doing business, with CODB rising due to team and system investments, what sort of ROI do you anticipate on these for future profitability?

Yes. I think looking at the Perfect Stranger results, that's a good test case. One of the investments we've made over the past 12 months is really having more dedicated resourcing in retail marketing and product in Perfect Stranger. And you can see from the sales results and us being able to open more stores, the benefit of that. So it's really supporting that growth of the business, like we mentioned. So yes, I think the proof is in the first half results on that investment.

First analyst question comes from Sam Haddad at Petra.

Congrats, Alice and Ethan for the strong result. Can I just circle back on the FX tailwind that's emerging. Can you provide -- just to remind us about your hedge profile and any sensitivity you can share on an unhedged basis for everyone increase in Australia dollar, what do you see in terms of basis point benefit on gross margin?

Yes. So maybe I'll start with the policy first. So we have a tiered policy that progresses over a 12-month period. We maintain that 12-month cadence. So at the moment, we have -- we're looking at about half of our spend for FY '26 will be hedged. The other half being spot rate that will obviously adjust as we go through the half. And then we've already entered into some hedging for FY '27 within policy as well. So you may recall last time we did the update, we called out 42 basis points of tail of headwind, sorry, for currency. We've seen that play through as we expected in half 1, but we will see a slightly stronger FX rate than that previous comment in half 2. So we're now seeing FX on a full-year basis being like a pretty much no impact. So negative impact in half 1, but almost an offsetting impact in half 2.

Just on a $0.70 spot rate, what would the tailwind be gross margin? Do you stay at these levels for 27 basis points just on that assumption?

Yes. Look, we're not really kind of giving guidance on '27 yet. Yes. So I think I'll defer on that question until we get closer to the full-year announcement.

And just on the -- you've done a few renovations and refurbish -- I mean, relocations. What are you seeing in terms of the uptickon those stores that have -- once they've refurbished and relocated, and just want to see what the opportunities are -- further opportunities that you have in your network.

Overall, from the history of the business, every time we have relocated a business, the uptake has been exceptional. So we don't move just for the sake of moving. We move because we realize that there is a better opportunity in a better location in the center where the mix might have changed, or that we've gotten more confidence within that center to take on a better location. Refurbishments, we do get a number of years or a number of rental increase rental lease expiry. That's the word I want. We do get a number of lease terms out of our shop fits because we build a fairly robust shop fit across all brands. However, when we have to upgrade them, and we stay in the same location, we definitely notice an uptick. We haven't got a concise number to share with you. And I can tell you, we've never gone backwards when we've relocated or refurbished.

Next question comes from Christian at Jarden.

Just first question on the like-for-like. In the first 7 weeks, the Universal Store 24%. For the rest of the combined comps are looking a bit lower around 8%. Does that mean like-for-like accelerate further throughout the half?

So you were cutting out a little bit. I think you're asking about have comps gone a bit weaker in the -- as the half progressed. Is that--

Yes. And would you expect then the like-for-like growth [indiscernible].

So again, kind of I think what you're saying was what do we expect for like-for-likes for the second half. So maybe we talk to first half. As Alice mentioned, we're cycling some strong results in half 1 last year. We had a really good Christmas in both periods. Look, we -- I guess we would note that like-for-like's moving within sort of a normal sort of tolerance. You're never going to be exact period-to-period. Sometimes you have phasing of events, festivals, et cetera. So all in all, we didn't see the like-for-like really shifting that much once you adjust for those factors in the first half. I think for the second half, as Alice mentioned, we're aware of the interest rate increase. We don't think -- we don't believe that's going to be a material impact to us in half 2. We are still cycling a good half 2 last year. So all in all, we still expect some good growth in half 2. We're not at the point where we're going to be giving specific guidance on half 2 like-for-like. So I think that's the way we'll answer that first question.

Margins obviously were up due to some reinvestment. Any color on the second half and any more reinvestment would have impact on the margins, and any increase there as well?

Yes. So again, so I think what you were saying was we saw margin go up and it's being reinvested into cost of doing business. I think that's the question. Look, I think the problem of looking at, say, sales margin and cost of doing business in isolation is you don't see how they interact with one another. And what I mean by that is we've invested some of that cost business investment has been in the product, marketing, and retail space, and that's allowed us to get that sales and gross profit increase. So is it a reinvestment? I think it's more of a cause effect. Because we have the capability, we're now able to open more stores and deliver on that top line and margin -- gross margin, sorry, increase. And then the other investments we're making, such as Alice mentioned, human resources, as an example, that's really to make sure we can scale as a business. And culture is so important to us here at Uni. So it allows us to scale and grow that as well.

[Operator Instructions] The next question, just on CTC THRILLS. Alice, you've spent a lot of time on this business since you've moved into the group CEO role. Any additional color you'd like to share on some of your focus initiatives?

We are really impressed by the way that we're getting fast-to-market product out to stores, out to the market. We're doing more capsule drops as opposed to the long kind of lead time. So we've really exercised that muscle, and the team are doing an exceptional job at increasing speed to market. That's a huge piece, and we're seeing that play out beautifully in retail. Meanwhile, we're unpicking some of the extraordinarily deep discounting that the online store was doing. And so we're accelerating the capability of the team and unpicking some legacy. However, there are many more things that we can be doing in the online space because I know people have questions about that. That is a 1-month isolated period of time that we took the pain to -- while we're still quite small. Reminding you that this is about 1.3% of the overall business. So let's not extrapolate more meaning out of that than actually exists. And we're planting seeds for good future growth in that business. So excited about changes to marketing that are just about to get underway. Product is definitely progressing the way that we wanted it to. Retail is progressing much more soundly. Overall, I'm impressed with what we've been able to achieve and still cautious, as we were with Perfectxchanger, everybody wanted us to open a bunch of stores really quickly. I'd like to make sure that we are well placed to do so. So we're applying the diligence required. Looking forward to getting stuck into the second half with our team.

Great. And just on the international opportunity, can you please talk to the opportunity outside of Australia, for example, in New Zealand, as well as potentially growing that online presence offshore?

Yes, that is something that the team are focused on. It's a New Zealand is still a challenging marketplace, I think, and we believe that we have quite a lot more work to be doing with onshore that we could be optimizing our delivery to customer better. We're looking at ways that we can run our own online business at Universal Store and Perfect Stranger better, sharing some of that knowledge with the CTC team. I think we've got -- after action reviews, we've got plenty of things to be doing onshore, while we do continue to look at how we could trade better overseas. So it's still in the pipeline. It's just not being accelerated at the moment.

Next verbal question comes from Emily Porter at Morgans.

Congratulations on the result. I just had a question around Perfect Stranger. You spoke a little bit about elevating the brand. And I'm just interested in how you're sort of seeing your customer respond to that price point? And do you feel like you've kind of got the right balance now?

I think we're comfortable with the balance that we've struck. I think there's no retail fashion apparel brand, I think, ever arrives. I think it's -- you're constantly polishing that diamond and refining and discovering how your customers' moods are changing. Valentine's Day was a real event this year. It fell on a Saturday. It's fantastic. the planet is aligning, lots of pink and red went out the door, lots of dresses, and we saw lots of Instagram posts to people wearing our clothes on their special moment dates. So I think, yes, I think that the brand is heading in the right direction, doing all the right things, elevating in the way that it needs to without sort of overreaching customer grass and hitting that beautiful sweet spot. So customers feel that the value is higher than the price. That's what you're always aiming for.

And maybe just a view on the sort of, I guess, the macro environment sort of shifting the narrative with interest rates potentially already gone up and maybe going up further. I guess your customers is kind of less, I would think, less sensitive to this given they don't generally have a mortgage. But I'm just interested in how you're sort of seeing the general landscape for the consumer moving over the next 6 to 12 months?

We haven't been impacted by that shift as of yet. When it hits rents is when it tends to be a bigger problem. But again, I think most people have rightsized from the last few ups and downs. I think we're kind of more desensitized to it in our market, it's not as much of an impact. You're absolutely right. If it hits the rental line, that's when we'll feel it. Anything to add to that?

Well, also it's worth mentioning that the currency is a bit of a tailwind. So that takes a bit of pressure off needing to raise prices as well. So I think there's kind of counteracting in some respects.

Thanks, Emily. Next question is from Peter Drew at Carter Bar. Can you provide some more color on the drivers of like-for-like growth in Universal Store and Perfect Stranger in Q2 and Q3, specifically in terms of basket and customer count, please?

Look, I think it's just getting the right product in for our customer because in the marketplace, discounting was outrageously rampant. It was very heavy. And much of the research that I pick up and read says that the used consumer is so much more inclined to buy the item that they want, not just something that's cheap. And I think that we've hit that market really well. So when we've got the right brands, the right shapes, the right styles, we're aware of the events that our customers are going to. We have drops that hit those events. We market to that event. We talk about it that we're aware of it. we're the go-to destination that you can trust that we'll have the thing you need for the event you're going to. Meanwhile, Nextdoor is 40% to 50% off for 8 months. I think that discount fatigue that you don't get pride about wearing a new outfit to an exciting event that you had to dig through a pile of discarded unwanted product. So this is the challenge that we've faced for a number of years, and we've held strong, and we continue to hold strong. And I think we continue to get the right product in for the right events. The consumer will vote the way they happen.

And just a follow-up question from Sam Haddad at Petra.

Just on -- I know you're testing a larger format store for Perfect Stranger in WA. Just want to get an update on how that's performed and opportunities for that larger format across the network.

Yes, really well. We just had this conversation yesterday. So great timing. Where it's appropriate, where the lease term is -- allows us to have that kind of flexibility, we're going to continue to test and trial different formats, different ways of doing things. Are there a few stores that we opened that I wish we got a few extra square meters in? Yes. Will we potentially be upsizing some of our current stores at the right time? Probably. But it really comes down to the store has to watch its space. We've never been an ego-driven brand that just opens big stores and with big lease terms that are onerous that drive a lack of profitability. We don't think that, that's a marketing expense. We think that's bad management. So yes, we will continue to expand that format where it's the right location. And we do the same for Universal store, where it's the right kind of center with the right kind of traffic that can get the turnover and we can get a good lease deal, we'll take a few extra square meters. Where we don't think so that we need to do that, we'll stick to that 225, 250.

And just final follow-up for me. Just the line of sight you have for new site availability in terms of leases and just dynamics of landlords.

Look, centers aren't -- there's not a lot of new centers opening, and centers aren't growing. So a lot of them are quite tightly held at the moment. However, we are seeing the reduction of some of the department store space, which is opening up some square meter in centers. And so we're constantly and actively working out with our landlords where we want to be -- if we're not in the center, which centers do we want to be in, they're aware of that. If we're in the center and we'd like a little bit more space or we'd like a better location, they're aware of that. And we're constantly chasing that opportunity.

I'd also just say with Perfect Stranger in particular, there's more landlord awareness of Perfect Stranger and they really now understand how Perfect Stranger can help the center as a whole. So anything else is correct, I think, but we're also now getting a bit more opportunities kind of brought to us for Perfect Stranger as well.

Thanks very much, Sam. I think that's all the time we have for questions today. If there are any follow-ups, please feel free to e-mail them through, and we'll endeavor to come back to you. And maybe with that, I'll just pass it back to Alice and Ethan if there's any closing comments.

Thanks. Look, closing comments are it was an exciting half. Every time we face into Christmas, I hold my breath and think can we possibly beat last Christmas, and this team does it again and again. So just hats off to the team really. I think we have to give credit where credit is due, and that is within the hands of the people that do the hard work every single day. We do our best to navigate and help guide, but it is a team effort at Universal Group across all 3 businesses. So hats off to every one of those team members, again, to our Board. And again, thank you very much for continuing to support us, and we hope that we've made you proud in your investment.

Thank you very much for joining today's Universal Store First half '26 results. Enjoy the rest of your day. Goodbye.