Despite having their highest annual sales ever, Universal Store has warned that their young customer base was spending less on items.
👉 Background: Universal Store is an Aussie youth fashion retailer that sells tonnes of popular brands like Champion, Nike, Nautica, and Patagonia. They've got over 75 stores across Australia and mainly target customers aged between 16 - 35.
👉 What happened: Now, Universal Store have announced their highest annual sales... but also warned that over March their young customer base were spending less on items.
👉 What else: This change in consumer behaviour are all thanks to the cost of living hiking up. And hearing the news from Universal Store got investors freaked and the share price dropped by more than 25%.
💡Investors react to company news today based on what they expect from a company's future. As a result, investor sentiment is heavily influenced by future prospects.
💡 With tightening economic conditions across the country, investors are becoming easily spooked by a consumer spending slowing down.
💡So now, Universal Store will need to think of creative ways to continue driving its revenue and profit - when young Australians are facing the toughest cost-of-living crisis in the past 30 years.
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