Revenue at Australian fashion label Perfect Stranger in the first seven weeks of FY25 has surged ahead of its direct-to-consumer (DTC) counterparts - Universal Store and Cheap Thrills Cycles (CTC) - hitting 89.9 per cent compared to the prior corresponding period.
The brand’s like-for-like sales were up by 24.2 per cent in the same period, cycling a 4.9 per cent growth in the first seven weeks of FY24 compared to FY23.
The latest sales boom for Perfect Stranger follows a 7.3 per cent lift in like-for-like sales for FY24, with second half sales higher at 11.5 per cent.
Parent company Universal Store Holdings reported that the emerging Perfect Stranger retail format continued to trade strongly during FY24 following efforts to continue to refine the offering with proven store economics - and with minimal cannibalisation of existing locations in the United States - alongside “established foundational systems and process and validated customer appeal in key catchments.”
Perfect Stranger’s online channel also ballooned at 60.6 per cent for FY24 compared to the prior fiscal year.
The fashion brand opened six new stores over FY24, bringing the total store count to 14.
The group added it is confident in the brand’s significant multi-year store roll-out opportunity.
Meanwhile, Universal Store recorded a 15.3 per cent bump up in sales for the first seven weeks, while CTC’s DTC sales were up 13.3 per cent. This follows a sales lift for both at 4 per cent and 6.2 per cent respectively.
The group noted that refining the Universal Store product range in the second half to better meet current customer demands was key to the improved sales performance throughout the year, with quarter-on-quarter sequential improvements continuing as the year progressed.
On a full year basis, Universal Store like-for-like sales declined 0.3 per cent, which was down 5.4 per cent in the first half and up 6.6 per cent in the second.
CTC’ sales lift was predominately driven by the continued growth of the emerging Worship brand, according to Universal Store Holdings.
During the year, efforts were targeted towards re-setting the brand’s priorities, with increased focus on DTC channels given the uncertainty across certain key wholesale accounts. Universal Store Holdings is not the only fashion group reporting issues in wholesale, with KMD recently reporting challenges with its Rip Curl business as wholesale clients pull back on orders.
Gross margin restoration is also a critical ongoing focus for Thrills, the group reported.
In terms of individual brand performance, CTC brands, Thrills and Worship, continue to perform well within Universal Store and other premium accounts according to the group. The DTC channels (stores and online) showed encouraging signs of improvement throughout the year.
The Group anticipates one to three new Thrills stores opening in FY25 as the company continues to trial a new store concept format in high-traffic locations with a larger store footprint - around 120-150sqm.
Overall, group sales across Universal Store Holdings were $288.5 million for FY24, up 9.7 per cent versus prior corresponding period. Gross profit margins were up 110 basis points to 60.1 per cent, while underlying operating profit (EBIT) was $47.1 million, up 16.6 per cent.
“We’re really pleased to have delivered significant growth in underlying EBIT versus last year,” group CEO Alice Barbery said. “Our success this year underscores our commitment to customer‑centricity and operational excellence.
“We maintained a steadfast focus on managing margins, optimising inventory and controlling costs, which drove significant earnings growth in a challenging consumer environment.”