Sunday 23 July 2017

Luxury shoe brand Jimmy Choo gets leg-up from Brexit-hit pound with record revenues

J-Lo in a KaufmanFranco dress with Jimmy Choo clutch and shoes
J-Lo in a KaufmanFranco dress with Jimmy Choo clutch and shoes

Ben Woods

Luxury shoe brand Jimmy Choo has cheered record revenues and profits thanks to a leg-up from the Brexit-hit pound and strong sales across Asia.

The British designer firm saw annual revenues climb 15pc to £364m in the year to the end of December, while earnings lifted 16pc to £59m over the period.

Jimmy Choo, which has more than 150 stores worldwide, also cheered growing sales from its men's division, which accounts for 9% of revenue.

However, like-for-like sales fell by 0.8pc over the period, as it counted the cost of "difficult market conditions" during the first half of the year.

Chief executive Pierre Denis said 2016 was a "landmark year" for the brand as revenues and profits reached record heights.

He added: "Revenue was significantly affected by currency volatility during the year, particularly post the UK referendum vote in June 2016, with all currencies stronger in relation to sterling, causing both significant reported sales value gains in the second half of the year and some sizeable shifts in client shopping patterns, largely in favour of UK trading."

Retail revenues stepped up 17pc to £243.9m following the launch of 10 new stores and the closure of one.

The firm said Asia continued to lead the charge on growth, with sales excluding Japan jumping by a third thanks to a strong performance in China where it launched three new stores.

But revenues across the Atlantic dropped by 1.7pc over the period, with sales taking a hit from moves to "reposition" its US business and weaker demand for luxury goods.

Jimmy Choo counts Jennifer Lopez, the Duchess of Cambridge and Beyonce among its illustrious fans.

Liberum analyst Tom Gadsby said: "The company's outlook statement is strong.

"Retail trends are improving across all regions and Choo has very strong growth prospects across all its channels.

"We are encouraged to see the strength of the company's retail business following sensible investment and there remains plenty of scope for further store expansion."

Press Association

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