Makeovers at a number of its dedicated shops helped to offset the decline of US department stores and pump up first half profits at Jimmy Choo, the British luxury fashion brand.
The company, which is in the process of an £896m takeover by Michael Kors, reported a 16.5 per cent increase in revenues in the six months to June, to £201.6m. Growth was boosted by the weak pound, with sales rising only 6.7 per cent on a constant currency basis, but Jimmy Choo said this figure was still stronger than the wider market “despite a challenging operating environment”.
Retail and licensing sales increased by 6.7 per cent and 24.3 per cent respectively on a constant currency basis, offsetting a 1.6 per cent in wholesale revenues. The company renovated or relocated eight stores over the period, and said it was seeing good results from the programme of refits. It added that it would close up to ten underperforming stores this year, with closures completed already.
Jimmy Choo said it had expected a reduction in purchasing by USA department stores “in the face of weaker footfall in the USA generally”, and said it would be implementing new logistics improvements to “facilitate improved sell through of collections” in the second half of the year.
Profit before tax jumped 174 per cent, to £18.1m, though last year’s figures were affected by foreign exchange losses and higher financing expenses. Adjusted earnings before interest, tax, depreciation and amortisation grew by a more modest 19.5 per cent.
Pierre Denis, Jimmy Choo chief executive, said:
We are delighted with our performance during the period, having delivered growth in revenue and margins, despite challenging market conditions.