Manolo Blahnik bets on boutiques despite luxury slowdown
Manolo Blahnik has reported a 19% dip in turnover to €86.4 million (£74.5 million) for FY24, but the luxury footwear house is leaning into long-term growth, investing millions in new stores even as the global luxury market softens.
The family-run brand invested in seven boutiques worldwide in 2024, almost doubling its retail footprint, and has channelled €4.3 million (£3.7 million) into expansion. New flagships in Miami and Milan are among the openings lined up for 2025.
CEO Kristina Blahnik called 2024 "a year of bold transformation and meaningful investment", noting that the company’s strategy prioritised direct-to-consumer (D2C) channels over short-term profitability.
"Amid a downturn in the luxury market, we doubled our number of directly operated boutiques, so I am particularly proud to report a strong sales performance - our third best year to date," she added.
CEO Kristina Blahnik
The D2C strategy is already showing results. Direct sales grew 13% year-on-year and now represent almost a third (32%) of total revenue, up from 22% in 2023. Meanwhile, Manolo Blahnik has pared back its wholesale network to focus on select "considered partners" that align with its brand values.
Despite EBITDA dropping 61% to €8.4 million (£7.2 million) due to store investment, the company remains financially resilient with no external debt and strong liquidity. June 2025 brought encouraging signs, with like-for-like D2C sales up 14% year-on-year and e-commerce up 25% in the first half.
Blahnik concluded: "Being an independent, heritage brand gives us the rare privilege and freedom to make long-term decisions that build lasting value. We can focus not just on immediate gains, but on shaping a future where Manolo Blahnik continues to thrive and inspire."
Looking ahead, the group expects modest growth in FY25 before a stronger uplift in FY26 as its store investment programme and D2C strategy mature.
