Jimmy Choo H1 sales and profits rocket
Jimmy Choo, the British luxury footwear and accessories house that was the subject of a recent buyout by Michael Kors, has reported a leap in sales and profits in the first half of 2017.
Total revenue in the six months ending 30 June was up 16.5% at £201.6m while profit before tax was up 172.4% at £18.1m. Adjusted EBITDA was £37.4m, up 19.5%.
CEO Pierre Denis, who is staying with the brand following its $1.35bn sale to Michael Kors, declared he was "delighted" with the figures. "We are delighted with our performance during the period, having delivered growth in revenue and margins, despite challenging market conditions. Strong underlying cash conversion has also allowed us to deleverage, providing us with a stable platform to deliver further strong growth," he said.
"Our long-term growth strategy is to nurture the brand’s unique DNA, to strive for excellence in business execution and to enhance client experience, in order to deliver superior growth and profitability, as well as leveraging the significant investments we have made in the business to date. We have continued to make good progress through the first half and are well positioned to deliver over the remainder of the year,” he added.
Highlights from the half included the opening of six new directly operated stores, a strong growth in men's (which now accounts for 9% of revenue) and a joint venture in UAE effective from July 2017, which covers six stores.
Chairman Peter Harf said the business, whose sale was agreed by former owner JAB Holdings, was optimistic about its future as part of the Michael Kors group. "We are excited about the opportunities presented to Jimmy Choo through Michael Kors’ all cash offer to our shareholders, as set out in the announcement on 25 July 2017. The shared vision and distinctive appeal of these two iconic brands will provide an exciting platform to achieve global leadership in luxury retail," he said.