Jimmy Choo share price rises as its revenues are boosted by strong Asian markets and its men’s shoes
Jimmy Choo shares spiked like its own stilettos today, after revealing promising full year results. Shares were trading up around 1.34 per cent, at 129p, having jumped from 127.3p to 130p as soon as markets opened.
Full year revenues for 2015 rose seven per cent to £318m, from £300m on a constant currency basis. Taking into account currency changes, the rate of growth was six per cent.
Retail sales accounted for £208m of the total 2015 revenue, up nine per cent from the year before.
Shoe sales, what the brand is most famous for after all, accounted for 76 per cent of net revenues.
Wholesale revenues were £100m. Revenues from licensing increased 50 per cent on a constant currency basis, to £10m.
Why it's interesting
While Jimmy Choo may be better known for its skyscraper heels, men's shoes are the fastest growing division for the brand, and made "excellent progress", accounting for seven per cent of net revenue.
The company also commented on a trend for smaller bags, as its accessories revenue remained stable.
At a time when most luxury goods companies are complaining of poor sales in Asia, Jimmy Choo said growth was led by Asia and Japan, which offset the loss of Russian tourists' spending in Europe and the impact of recent terrorist attacks on the continent, adding:
"We remain confident in our ability to grow faster than the market. Our business in Asia (where we are under-penetrated) and Japan is growing well, and we have significant opportunities to maintain this outperformance in the years ahead."
What Jimmy Choo said
Chairman Peter Harf said:
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.
Jimmy Choo is on point, and ready to continue its steady stride into Asia