The Brisbane-based youth fashion retailer blamed the Covid lockdowns in the first half when sales fell 8 per cent compared with a second half increase if 7.4 per cent.

Underlying product gross margin rose 40 basis points to 61.2 per cent which Universal said was helped by a customer-led mix shift to private brands.

However, the company said it could not provide guidance because of market uncertainty but its first eight weeks of trading in the current financial year was showing encouraging momentum.

“We are optimistic as we head into the spring season as we see the re-emergence of more social events and cultural festivals,” the company said.

Freight costs weighed heavily on the company, reducing the gross profit margin by 40 basis points to 58.3 per cent.

A fully-franked dividend of 10.5 cents a share was declared.

Chief executive Alice Barbery said the company was growing its market share and its private brand offerings were going from strength to strength.

“Our newest private brand, NEOVISION< has demonstrated our capability to identify gaps in our range and develop products to meet those needs,” she said.

“Universal Store continues to evolve into a larger, more sophisticated and more robust business following successful implementation of various key strategic initiatives and investments.”