China, Men’s Kick Up Profits At Jimmy Choo

Jimmy Choo Resort 2017 Shoe Collection
Jimmy Choo resort '17 shoe collection.
Xavier Granet.

Jimmy Choo plc reported net income leaped 27.9 percent in the first half on the back of “impressive” growth in China and strides with its men’s footwear.

Net income amounted to 14.3 million pounds, or $20.5 million, while revenues in the six months to June 30 improved 9.2 percent to 173.1 million pounds, or $248.1 million. Stripping out the impact of exchange rate fluctuations, the sales gain stood at 3.8 percent.

Chief executive officer Pierre Denis said sales growth and margin expansion contributed to the improved earnings. Cost controls also underpinned the 12.8 percent expansion of adjusted earnings before interest, taxes, depreciation and amortization to 31.3 million pounds, or $44.9 million.

Dollar figures are converted from British pounds at average exchange rates for the period in question.

“We have made a good start to the second half and we remain optimistic about our prospects for both this year and for our performance in the future,” Denis said.

The company trumpeted growth in Asia, but a “difficult” market in the United States, where it “managed repositioning.”
Its men’s collection, introduced in 2011, now accounts for 8 percent of revenues.

Most of its store investments for 2016 were concentrated in the first half, when Choo opened six directly operated stores and renovated or relocated nine units.

Roughly 40 percent of its store network reflects its new design concept, which is offering “good performance,” the company noted. The network totaled 147 units at June 30.

In the half, wholesale revenues outpaced retail ones: the former gaining 10.6 percent and the latter 7.6 percent at constant currency. Like-for-like sales growth in its retail network slipped 4 percent.

Revenues from licensed products, which include perfume and eyewear, and other sources leaped 26 percent to 6.2 million pounds, or $8.9 million, which Choo asserted “demonstrates brand flexibility and versatility.”

The British footwear and accessories firm had swung to profit in its 2015 fiscal year after recording losses in 2014.