Universal Store Holdings has appointed George Do in the newly created role of Universal Store and Perfect Stranger divisional CEO, effective March 1, after suffering a steep net profit decline in the first half.

Do is currently the head of product for Universal Store and Perfect Stranger and has been a part of the company’s leadership for 16 years.

Universal Store Holdings said Do’s appointment will allow group CEO Alice Barbery to focus on long-term strategy, which includes exploring new avenues for business development and realising Cheap Thrill Cycle’s (CTC) strategic potential.

The new appointment comes after the group posted a net profit of $11.3 million in the six months ended December 31, down 45.6 per cent, which included a $13.6 million CTC impairment charge.

The group’s revenue soared 16.1 per cent to $183.5 million with Universal Store’s sales rising 17.2 per cent to $156.1 million and Perfect Stranger’s sales surging 92.3 per cent to $12.6 million.

However, CTC’s sales dipped 12.4 per cent to $22.2 million due to a decline in the wholesale channel, reflecting subdued market conditions and a material decrease in a small number of retail accounts.

“The youth fashion apparel customer continues to be discerning and willing to spend on on-trend, quality clothing,” said Barbery.

“The group remains focused on cost discipline as we build our team and system capability to support future growth.”

The group said it is on track to open nine to 15 stores in the current fiscal year, with seven stores already opened in the first half and five new stores confirmed to open in the second half.

In a trading update for the second half to date, the group noted that Universal Store’s sales increased 27.6 per cent while Perfect Stranger’s sales climbed 90.1 per cent.

Moreover, CTC’s sales improved 40.1 per cent.