Saturday, September 26, 2020

Jimmy Choo posts drop in profits


Jimmy Choo has reported a drop in profits, but a boost in sales helped by its growing menswear brand.

The retailer’s preliminary results show pre-tax profit dropped from £22.1 million in 2015 to £17.7 in the 12 months to December 31 last year.

Despite this, revenues grew by 14 per cent to £364 million and adjusted EBITDA grew by 15.7% to £59 million.

The brand, known for its women‘s shoe ranges, has seen a sharp increase in sales of its menswear offering, now the fastest growing sector in the business with a nine per cent increase year on year.

READ MORE: Jimmy Choo posts record revenue for 2016

Growth was also aided by the introduction of 16 new directly-operated stores which now count for over 45 per cent of the business, aiding omni-channel sales.

Online revenues now account for six per cent of the business.

“2016 was a landmark year for Jimmy Choo,” chief executive Pierre Denis said.

“Not only did we successfully celebrate 20 years of heritage but record revenues and profitability are testament to the growing appeal and strength of our brand.

“We will continue to deliver on our long term strategy of growth through the creative and innovative development of our collections and the sustained expansion of our distribution network, particularly in areas such as Asia where we remain underpenetrated.”

The retailer went on to state that currency fluctuations following Brexit had impacted both financial results and client purchasing behavior.

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