Store Openings Help Fuel Jimmy Choo’s Growth

New store openings helped fuel second-half revenue growth at Jimmy Choo despite a difficult climate for luxury, the company said in a trading update on Friday.

While the firm did not provide any figures or projections, it said all regions have been growing since June 30, with China continuing to build momentum.

CEO Pierre Denis said he is expecting another “record year” despite the challenging backdrop, adding that the company is “on track” to deliver underlying profits in line with projections.

For the full year, the company said it expects to deliver margin improvement and cash generation as it improves operating efficiency and manages costs.

Over the past five months, the footwear-and-accessories maker has opened four directly operated stores, all with its latest interiors concept.

The weaker pound continues to pump up revenues and drive sales, in the U.K. in particular. In London and other parts of the U.K., all luxury-goods brands are benefiting from tourists taking advantage of the shrinking pound.

Choo said that in Milan, where its store was closed for two months for renovations, like-for-like sales in the second half have turned positive despite the disruption.

As reported, net income climbed 27.9 percent in the first half on the back of robust growth in China and strides for Choo’s men’s footwear.

Net income amounted to 14.3 million pounds, or $20.5 million, while revenue in the six months through 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.

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