Co-founders Pip Edwards,who has worked for General Pants and Ksubi,and Claire Tregoning,beat four,arguably less commercial,brands to win the $100,000 prize.
The homegrown label,which makes streetwear-inspired activewear with retro touches,is the darling of everyone from Brunswick babes to Bondi mums with Bugaboos.
"We won it because there's a lot more structure and potential to grow,"Edwards said."One of the judging criteria was,'Can you change the Australian[fashion] landscape?',and we have the power for scale and a clear path."
While past winners such as Dion Lee have gone on to great commercial success,few have won with the jumpstart that P.E. Nation has had,including being stocked by David Jones,the sponsor of the award.
However,Edwards defended P.E. Nation's inclusion in the category,saying although she and Tregoning have decades of combined industry experience,their label is still in its early days.