Jimmy Choo revenues skyrocket with strong Asia market, weak pound and menswear range
By April Kirstin Chua
Jimmy Choo reports strong revenue gains brought about by its growing market in China, the weak pound and its menswear line.
The luxury brand's outlook proves strong as it continues to deliver creative and innovative progress in its collections with its efforts on expansion.
The British luxury band's revenue rose to 14.5 percent to £364 million, while operating profits boosted 43 percent to £42.5 million. Notably, shoes accounted for the majority of Jimmy Choo sales with menswear remaining to be its fastest growing category that holds nine percent of revenue. The opening of new stores, with a total of 150 outlets worldwide, also helped increase sales.
Fiona Paton noted that although exchange rate moves remained a concern, the lower pound attracted more foreigners.
"The retailer's reported high revenues were largely a result of currency changes during the year, which caused both sales values gains and changes to shopping patterns, as tourists favored buying luxury items in the UK," Paton said.
In the recent months, the world experienced an economic crisis with Brexit, terror attacks in Europe and weaker revenues for US retailers, all of which led to depressing financial results and client purchasing behavior.
The retail analyst at GlobalData also said that Jimmy Choo as a brand established in Great Britain gave compelling reasons to buy for consumers in Asia, unlike some other luxury brands. The challenge, however, is in the US market where more innovative marketing should be developed. She suggested for Jimmy Choo to implement creative campaigns and hire a well-known ambassador to gain more relevance and excitement.
Pierre Denis, Jimmy Choo CEO, looked back at the brand's landmark year last 2016 and promised to broaden its appeal, invest in revamped shops, new websites and distribution networks.
"Not only did we successfully celebrate 20 years of heritage but record revenues and profitability are testament to the growing appeal and strength of our brand," he said in a statement.