Universal Store has seen a customer-led mix shift towards private brands, with underlying gross margin increasing 40bps to 61.2% in FY22 as a result.
This week, the streetwear chain announced the acquisition of its highest selling third-party brand Thrills for $50 million.
The move will see it bolster its current private label offering, following the launch of its latest venture ‘Neovision’ in FY22.
Overall, private brand purchases have grown to 43% of total sales.
In a trading update earlier this year, CEO Alice Barbery said the retailer is proving its capacity to successfully manage multiple brands and retail concepts.
“Our private brand offering goes from strength to strength and compliments our range of third-party brands," she confirmed.
“Our newest private brand Neovision has demonstrated our capability to identify gaps in our range and develop products to meet those needs.”
Perfect Stranger is currently Universal’s largest brand, representing more than 16% of sales.
Universal Store, which had 78 stores and two eCommerce sites at June 30, is currently targeting a total of over 100 stores across Australia and New Zealand.
It opened 11 new stores in FY22, including nine Universal and two Perfect Stranger locations.
While Universal Store reported it has yet to size the “full potential” of the Perfect Stranger retail format, the current stand-alone store trial has progressed well.
It is planning to open an additional four new Perfect Stranger locations ahead of Christmas.
Universal Store reported total sales of $208 million for FY22, a marginal decline of 1.4% due to lockdowns in the first half.