Universal Store Holdings' (ASX:UNI) group retail sales for the first 43 weeks of fiscal year 2026 grew 14% year-over-year, according to a Tuesday Australian bourse filing.

The deterioration of CTC's wholesale channel continued in the fiscal second half, with the closure of third-party customer retail stores and reduced intercompany sales to the US. It said that the challenges in the wholesale channel are considered structural and unlikely to improve in the near term.

The group plans to recognize an impairment of CTC's intangible assets of around AU$24 million based on a reassessment of their carrying value.

This non-cash impairment charge is expected to be excluded from underlying earnings, per the filing.

It forecast fiscal year 2026 sales of between AU$368 million and AU$375 million and underlying earnings before interest, taxes, and amortization of between AU$61.5 million and AU$64.5 million.

Its shares fell 2% in recent trading on Tuesday.