Jimmy Choo profits walking tall as £900m takeover looms
LUXURY shoe brand Jimmy Choo has proven that it has not fallen out of fashion ahead of its £900m takeover by handbag maker Michael Kors, after almost tripling pre-tax profits for the half year.
The shoe maker, which counts actresses Halle Berry and Reese Witherspoon as fans, said that it had been bolstered by strong sales in its licensing and men’s ranges, “despite a challenging operating environment”.
Pre-tax profits swelled from £6.6m to £18.1m in the six months to June 30, aided by a 16.5pc jump in sales to £201.6m. Jimmy Choo’s licensing business, which includes its fragrance and sunglasses ranges, was a star performer, growing sales by 40.3pc to £8.7m. The bulk of sales continued to come from its 151 shops, where they grew by 18.5pc, or 3.5pc on a like-forlike basis, to £127.1m.
The group’s wholesale business, which includes sales within department stores, rose by 10.4pc to £65.8m.
“These strong foundations will prove to be invaluable as we embark on the next phase of our strategic development,” said Peter Harf, chairman of Jimmy Choo.
Michael Kors agreed a £900m takeover of Jimmy Choo last month following a sale process by majority owner JAB Holdings, the investment vehicle of the wealthy German Reimann family, which owns a near-68pc stake in the London-listed company.
The US handbag brand is offering investors 230p a share. Jimmy Choo shares inched 0.4p higher to 229.9p on the back of the trading update, indicating shareholders’ confidence in the takeover going ahead.
Michael Kors made the move for Jimmy Choo after losing out in a takeover tussle with Coach to buy accessories firm Kate Spade earlier this year.
Jimmy Choo was founded by the eponymous Malaysian-born shoemaker and Tamara Mellon, the former Vogue journalist, in 1996.