Kurt Geiger Says Handbags Driving U. S. Growth
The brand has more than 74 stand-alone shops.
Kurt Geiger is touting its most profitable month yet, which it says was largely driven by strong handbag sales in the U.S.
The U.K.-based footwear and accessories brand said December 2023 sales increased 15 percent to 45 million pounds compared to the same month in 2022, making it the most profitable month in the company's history. Store sales in the U.K. were up by 12 percent, with digital sales up 45 percent, driven by handbags and accessories.
December's results were largely boosted by sales in the U.S., which increased 60 percent. The U.S. has become Kurt Geiger's largest market, where handbags are its bestselling category. Handbags represent 50 percent of sales in the U.K. Kurt Geiger said its handbags, the average cost of which are 250 pounds each, have seen strong demand due to a shift toward “affordable luxury.”
“Handbags and accessories continue to underpin our robust sales, and combined with a growing celebrity following, we are very well positioned to continue our profitable growth trajectory in 2024,” Neil Clifford, chief executive officer of Kurt Geiger, said in a statement.
In October, Kurt Geiger reported that net sales were up 31 percent to 329.5 million pounds in the 12 months ended in January. Kurt Geiger also saw a 49 percent increase in earnings before interest, taxes, depreciation and amortization, or EBITDA, to 30 million pounds in the period. U.S. sales grew 171 percent and overall handbag sales rose to 91.6 million pounds.
The company said its record December spurred it to make a 1 million pound donation to its philanthropic Kurt Geiger Kindness Foundation, which helps young people across all backgrounds secure a future in creative industries. As part of this donation, the company launched its “Business by Design” educational program that encourages talent from underrepresented groups. Following their graduation from the program, one member of the class will be offered a job at Kurt Geiger for one year.
Kurt Geiger opened its first boutique on Bond Street in London in 1963. The business today comprises more than 74 stand-alone shops across the U.K., including eight stores that opened in
2023. The brand heralded a new phase of expansion in September when it opened a new 2,916-square-foot store on London's Oxford Street. At the time of the opening, the company said it marked the first step in a major retail rollout that will see it open nine stores in North America in the coming year.
“We have been beyond humbled by the success of our new Oxford Street store,” Clifford said. “Our flagship brings our brand and vision to life better than I could have ever hoped for.”
In addition to its namesake brand,
Kurt Geiger operates shoe departments in Harrods, Selfridges and Liberty. Kurt Geiger said it plans to open five more stores in the U.S. in 2024.
Following a 41 percent sales growth in Europe, the Middle East and Africa in 2023, the company plans to open more Kurt Geiger stores across several European cities across a two-year period, starting with potentially Athens, Rome, Milan, Barcelona and Madrid, followed by Paris, Amsterdam, Berlin and Munich. The company also plans to open new stores in Dubai and Saudi Arabia.
In the Americas, the company plans to expand its three-store presence in Mexico with an additional three stores. Digital sales in Mexico grew 71 percent in 2023.
“These results underline Kurt Geiger's transformation over the last decade from a predominantly U.K. shoe brand to what it is today; a global accessories brand with a cult following in both the US and U.K.,” Clifford said.
According to prior reports, Kurt Geiger's private equity parent company Cinven is in talks with advisers at Bank of America to explore a possible auction of the brand.