Jimmy Choo revenue rises 7%
Jimmy Choo announced on Thursday revenues for the year ended December 31 reached a record 7% growth to £318 million, driven by a particularly consistent growth in Asia and Japan, a store roll-out program and the on-going expansion of the retail and wholesale channels.
On a constant currency basis, the company increased its retail revenue by 9% to £208 million, while the wholesale business grew moderately by 1% despite the impact of the conversion of 3 franchise stores in Singapore and Malaysia from wholesale to retail.
During the year, Jimmy Choo opened 16 new directly-operated stores and renovated 15 according to its new store concept. 30% of the brand’s store portfolio showcases now the new format.
Peter Harf, Chairman of Jimmy Choo commented: “Jimmy Choo continues to outpace the sector despite the challenging competitive environment. The company successfully reversed the first half decline in wholesale revenues and is on track with growth forecasts in Asia and Japan where brand awareness continues to grow strongly.”
The retailer’s main driver of revenue growth in 2015 was shoes, which represented 75% of the total revenue. Men’s shoes continued to be its fastest growing category, accounting for 7% of net revenue.
While growth was mainly led by Asia and Japan, Jimmy Choo said its European business benefited from growth in tourism, offset by the loss of Russian visitors and the impact of recent terrorist events. The US segment made good progress in a market distorted by both foreign exchange fluctuations, which affected consumer’s behaviors, and competitive pressures.
The luxury brand, whose core products are shoes but also sells handbags, small leather goods, accessories and fragrances, said it remains confident of its ability to grow in 2016. This year Jimmy Choo plans to continue with the implementation of its omnichannel platform in the US and Europe for the retail and online network, and launch 10 to 15 new directly-owned stores worldwide.