Jimmy Choo’s first-half profit almost triples

LONDON: Luxury shoemaker Jimmy Choo Plc, which is being bought by US retailer Michael Kors, said its pre-tax profit for the half year almost tripled, helped by its retail and licensing businesses.

Pre-tax profit for the six month to June 30 was £18.1 million (RM99.8 million), compared with £6.6 million last year. Revenue for the period rose 4.5% to £201.6 million.

Michael Kors agreed two months ago to buy Jimmy Choo for US$1.2 billion (RM5.12 billion), snapping up the British company whose towering stilettos have been made famous by celebrity customers from Princess Diana to Kendall Jenner.

Jimmy Choo chairman Peter Harf said the deal opened up exciting opportunities.

“The shared vision and distinctive appeal of these two iconic brands will provide an exciting platform to achieve global leadership in luxury retail,” Harf said in a statement.

Revenue at the company’s Japan unit rose 11% at constant currency helped by continued growth in its Men’s section.

Excluding Japan, the company’s Asia business grew 8.2% at constant currency, driven by strong demand for seasonal fashion offerings.

In early August, Michael Kors reported better-than-expected profit for the first quarter, and lifted its full-year revenue forecast.

Michael Kors also for the first time quantified Jimmy Choo’s impact on revenue. The company said it expects the deal to add about US$275 million to sales in the second half of the year ending March 2018, assuming the deal closes by the third quarter. – Reuters