Young consumers not so carefree anymore as spending dries up
Shares in youth clothing retailer Universal Stores plunged 25 per cent after it said the economic environment was deteriorating and young consumers were experiencing pressure on spending levels.
Universal Store said younger consumers were reluctant to spend (Pic: Instagram/Uiniversal)
The Brisbane based retailer said despite that, its financial year performance included record sales.
“Group margins and business unit inventory levels have been well managed against a backdrop of increased promotional discounting activity from peers and some evidence of over-stocking in the market,” it said in a trading update.
“More recently, trading conditions observed throughout April and May to date have further tightened indicating that some customers are reducing their spending. The group expects this subdued environment to continue for the balance of 2023 and into 2024.”
It said its underlying earnings before interest and tax was expected to be between $39 million and $42 million.
Margins were expected to exceed 61 per cent that was delivered in 2022.
