Australian apparel business Universal Store has appointed George Do to the newly created role of divisional CEO of Universal Store and Perfect Stranger, effective from March 1, 2025.
At the same time, the group has recorded a 16.1 per cent lift in total sales for the first half of FY25, offset by a fall in its Cheap Thrills Cycles (CTC) subsidiary, primarily driven by wholesale challenges.
George Do has been part of the Universal Store leadership team for 16 years, commencing his career there as a buyer. According to the group, his appointment will allow group CEO Alice Barbery to focus on the long term strategy, while exploring new avenues for team and business development and realising CTC's strategic potential.
“George is a respected, skilful and engaging leader with our team,” Barbery said. “He has been the driving force behind our customer-focused product development strategy and processes within the product team.
“His experience and influence across many facets of the business, coupled with his strong leadership and unwavering commitment to our goals and values, has earned him the respect of the entire leadership team and the full support of the board.”
Alongside the leadership announcement, Universal Store shared its first half results, which showed group sales hitting $183.5 million, driven by a 17.2 per cent lift in Universal Store sales to $156.1 million, and a 92.3 per cent lift in Perfect Stranger to $12.6 million.
Offsetting the growth was a 12.4 per cent fall in sales for CTC, with like-for-like sales for the brand up 3.2 per cent. According to Universal Store, the total sales fall in CTC was due to a 16.4 per cent decline in its wholesale channel. The business’s direct-to-market channel grew 1.1 per cent.
“The decline in wholesale reflects subdued market conditions and reflects a material decrease in a small number of retail accounts,” Universal Store reported. “The CTC brands (THRILLS and Worship) continue to trade well in US representing ~11% of US sales, consistent with pcp.”
The CTC business also reported a 210 basis point fall in gross margin for the half, hitting 45.3 per cent. This was reportedly due to product sales mix and aged inventory markdown activity.
Universal Store previously reported that the decline in CTC’s wholesale channel represents a risk to impairment of the business’ goodwill recognised on the acquisition by the group in October 2022. Following the recent slip, the group recognised a $13.6 million write down of CTC goodwill in H1 FY25.
“The group remains confident in the long-term potential of the CTC business. New leadership was onboarded, a new point of sale system has been implemented and a new store was opened in Q2 FY25. An additional new store has been confirmed for Q4 FY25.”
The CTC wholesale channel represents less than 5 per cent of Universal Store group sales.
Meanwhile, like-for-like sales for Perfect Stranger was up 25.3 per cent, while Universal Store’s like-for-like sales lifted by 14.4 per cent.
All this added to a group gross profit margin like of 90 basis points to 60.6 per cent.
Barbery said the overall result for the group was very pleasing.
“This performance reflects the team’s commitment to connecting with our customers with on-trend, occasion for wear apparel, communicating with our customers in the channels relevant to them and strong operational execution,” Barbery said.
“The youth fashion apparel customer continues to be discerning and willing to spend on on-trend, quality clothing.”
Barbery added that the group remains focused on cost discipline as it builds team and system capability to support future growth across its three brands.
In the second half, from Weeks 27 to 34, direct-to-consumer sales across the three brands were up in the double digits, including CTC. Total DTC sales in early second half were up 31.8 per cent.
Universal Store sales grew by 27.6 per cent, with like-for-like up 22.5 per cent in the early second half.
Perfect Stranger sales grew by 90.1 per cent, with like-for-like up 38.8 per cent, and CTC sales grew by 40.1 per cent, with like-for-like up 37.8 per cent.