Asia steps up as Jimmy Choo kicks its heels across Europe
JIMMY CHOO has seen fashion buyers take their foot off the gas in Europe, the Middle East and Africa, with sales declining in its largest region, writes Alan
Tovey.
The company, famous for its luxurious high-heeled shoes, said that sales in the division slipped 4.5pc to £65.7m over the first six months of the year, a drop it attributed to the pound’s strength against the euro and a slowdown in Russian tourism.
However, the FTSE 250 business noted that the division was given a boost by trendy Chinese tourists, who like to go shoe-shopping while on holiday.
Overall group sales rose by 5.5pc to £158.5m, with Asia, excluding Japan, the star performer. There, revenues stepped up by more than a third to £22.2m. Sales in Japan jumped by a fifth to £18.8m, while revenue in the Americas edged forward 5.1pc to £51.8m.
Jimmy Choo, which floated in October 2014 at 140p, outpaced the wider fashion industry in the half, according to Pierre Denis, chief executive, who said rivals had posted growth in “low single digits” in a “challenging environment”.
He added: “Our unique DNA and our collections have maintained their resonance with our clients. We have enjoyed particular success with the Cinderella shoe and capsule collections which have captured our clients’ imagination.”
Pre-tax profits during the period leapt ahead to £15.5m, compared to a £1.7m loss a year ago.
Gross margin also improved, rising 130 basis points to 62.7pc on the company’s luxury shoes.
Sales in the retail business rose 9.6pc to £99.7m, mainly driven by new store openings, while like-for-like sales grew 3pc. In the wholesale division, however, warehouse disruption and outlet closures sent sales down 5.1pc to £53.9m.