Jimmy Choo sales outpace global competition

Jimmy Choo sales outpace global competition

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British designer shoe brand Jimmy Choo shrugged off the woes in the luxury goods sector to post higher annual sales and earnings.

The group said strong growth in Asia and Japan helped retail like-for-like sales rise 1.1% in 2015, while underlying earnings lifted 1.5% to £51m.

The results defy the gloom in the wider luxury sector that has hit rivals such as Burberry, which has suffered as China’s economy has slowed.

Peter Harf, chairman of Jimmy Choo, said: “Jimmy Choo continues to outpace the sector despite the challenging competitive environment.”

He said the company had “successfully reversed the first-half decline in wholesale revenues and remains on track with growth forecasts in Asia and Japan where brand awareness continues to grow strongly”.

But in a note of caution, chief executive Pierre Denis added: “We approach 2016 sensitive to the many challenges facing the sector.”

Overall revenues rose 6.1%, or 7.2% with currency movements stripped out.

Sales surged by 29% in Japan and by 20.1% across the rest of Asia, while growth was more muted at 4.9% across Europe, the Middle East and Africa (EMEA)
Sales fell by 0.7% in the Americas region.

Whereas Burberry has been hit by falling spending by Chinese tourists in some of its markets, Jimmy Choo said it saw strong growth in international customers, including from China.

But it said there had been a fall in spending by Russian customers across the EMEA region.

The group’s retail operations still make up the bulk of its revenues – at 65.3% – but fragrance and eyewear account for 3.3% of turnover.

It launched its first men’s fragrance – Jimmy Choo Man – in 2014 and its third women’s fragrance, Illicit, last August.

The business, which also sells bags and accessories, was founded by former Vogue accessories editor Tamara Mellon and Malaysian designer Jimmy Choo who opened their first store in 1996.

The company’s shoes were made famous by the character Carrie Bradshaw in the hit US TV show Sex and the City.

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