The Charles Street store's owners, Lisa and Luke Tedeschi, won the champion fashion award at the Australian Small Business Championship ceremony in Sydney on Saturday night.

It is the second time that the store has won the award, after taking the title in 2010.

Ms Tedeschi said she and her husband were sitting in the front row when the award was announced and had to accept it in front of about 1000 people.

"We were very surprised," Ms Tedeschi said.

"We didn't have anything prepared so we had to give an impromptu speech, which was a bit nerve-racking."

She said the win was great for the business.

"It's great recognition for our achievements and it will continue to propel us with the next adventure for our store."

That adventure is diving further into the online market and increasing its international customer base.

The Australian Small Business Champion Awards are the only national recognition program for Australia's small businesses.

They are aimed at recognising outstanding Australian small businesses and encouraging high standards of excellence in small business practice.