Demand in Asia drives Jimmy Choo growth

Revenue and earnings were up thanks to strong demand for the luxury wares of Jimmy Choo in 2015, particularly in Asia and Japan, with the firm reporting revenue growth of 7.2% at constant currencies on Tuesday.

The FTSE 250 company’s consolidated net income increased £30.2m into the positive figures, reaching £19.4m, while adjusted EBITDA grew 1.5% to £51m.

Basic and diluted earnings per share grew to 5.1p during the calendar year, from an 11.6p loss per share in 2014.

Jimmy Choo’s board cited strong performance in Asia, and opened 13 new directly operated stores during the period. It also converted three franchise stores to directly operated outlets in Singapore and Malaysia.

A new store concept was launched in 2015, and by year-end 30% of its directly operated estate had been converted to the concept.

"Jimmy Choo made excellent progress in 2015, delivering sustained renovation of the retail portfolio whilst continually evolving the product mix and meeting development targets,” said CEO Pierre Denis.

“Our teams work hard to deliver products of the highest quality and innovation whilst designs led by our creative director, Sandra Choi, have been warmly received by clients and critics and are a key factor in the growing global appeal of our brand,” he added.

Denis said the company was particularly pleased with the turnaround in consolidated net income from 2014’s loss of £10.8m, and had approached 2016 sensitive to the challenges facing the sector.

“Against this background, our teams continue to work hard to execute our growth strategy, without compromising our brand or its luxury position,” he explained.

“We will continuously improve our operating efficiency and manage our costs to deliver margin improvement and good cash generation."

Chairman of Jimmy Choo, Peter Harf, said the brand was continuing to outpace the sector despite a challenging competitive environment.

“The company 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,” he commented.