RNS Number : 1355V
Jimmy Choo PLC
26 January 2017
 

26 January 2017                                                                    

                                   

Jimmy Choo PLC

 

Accelerating Retail Growth

 

Jimmy Choo PLC, the British luxury brand specialising in shoes and accessories, today announces another year of record revenue for the year ended 31 December 2016 with strong growth in Asia, continued solid growth in Europe and Japan and improving trends in US retail offset by the planned reduction in US wholesale.

 

Highlights

 

·      Revenue of £364m, up 15% (2% at constant currency)

Retail revenue grew 17% to £244m (4% at constant currency).  A stronger final quarter resulted in LfL in the second half improving to 2% and an overall LfL for the year of -1%

Wholesale revenue grew 8% to £107m (-4% at constant currency) with the planned reduced purchasing by USA department stores offset by growth across all other regions

·      Directly Operated Stores (DOS) count increased by 9 in the year

·      16 further DOS renovated in the New Store Concept

·      Over 45% of the store portfolio now in the New Store Concept

 

Pierre Denis, CEO of Jimmy Choo PLC, said:

 

"In our 20th anniversary year, we have continued to grow and to build on the strength of the brand.  I would like to thank all my colleagues for their hard work in delivering this excellent performance.  We look forward to 2017 as we continue to deliver on our strategy of growth through the development of our collections, fashion leadership and the controlled expansion of our distribution network."

 

Revenue by Channel £m

12 months to 31 December 2016

12 months to 31 December 2015

Growth at reported currency

Growth at constant currency

Retail

244

208

17%

4%

Wholesale

107

100

  8%

(4)%

Licensing/Other

13

10

25%

9%

Total

364

318

15%

2%

 

Overview

 

The main driver of revenue growth in 2016 was shoes, which represent 75% of revenue.  Accessories benefitted from the continued development of our iconic Lockett group of bags.  2016 saw further strong growth in our licensing business.  We made continued progress in Men's (including shoes and accessories) which remains our fastest growing category and now accounts for around 9% of revenue.  We extended our Safilo licence until 2023 and have scheduled the launch of Men's sunglasses & eyewear for 2018.

 

We have seen continued expansion of our retail and online channels with Retail revenue up 17% at reported rates (4% at constant currency) to £244m (67% of revenue), as we continued to open new DOS as well as renovating our existing store portfolio in the New Store Concept.  A stronger final quarter resulted in LfL in the second half improving to 2%, with all regions ahead of the first half.  LfL was -1% for the year, reflecting the impact of the renovation programme and downward adjustments to maintain our global price positioning.  The business saw a much improved trend throughout the second half.  Online continues to grow and represents 6% of revenue.

 

The number of net new DOS in the year was 9, giving a total DOS portfolio of 150 at 31 December 2016.  Our new concept continues to outperform and we refitted a total of 16 stores in the year, with over 45% of our portfolio in the New Store Concept at the year end.  Our store development programme continues in line with previous guidance.

 

Outlook

 

We anticipate delivering underlying profits in line with expectations for 2016.  As we move forward into 2017, we see improving trends across all regions and are well positioned to take advantage of a stronger marketplace.  This, combined with our sustained investment plan, gives us confidence that we will deliver on the strong current growth expectations for 2017.

 

Jimmy Choo PLC will present preliminary results for the year ended 31 December 2016 on 2 March 2017.

 

 

Enquiries

 


Jimmy Choo PLC

+44 (0) 207 368 5000

Pierre Denis, Chief Executive Officer


Jonathan Sinclair, Chief Financial Officer and Executive Vice President

Victoria Huxster, Head of Investor Relations




Montfort Communications

+44 (0) 203 514 0897

Hugh Morrison

+44 (0) 7739 655 492

Sophie Arnold

+44 (0) 7881 580 756

 

All figures presented in this announcement are unaudited.  Certain statements made in this announcement are forward-looking statements.  Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.  Jimmy Choo PLC undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document.  All persons, wherever located, should consult any additional disclosures that Jimmy Choo PLC may make in any regulatory announcements or documents which it publishes.  All persons, wherever located, should take note of these disclosures.  This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Jimmy Choo PLC shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction.

 

Notes to Editors

 

Jimmy Choo encompasses a complete luxury accessories brand. Women's shoes remain the core of the product offer, alongside handbags, small leather goods, scarves, sunglasses, eyewear, belts, fragrance and men's shoes. CEO Pierre Denis and Creative Director Sandra Choi together share a vision to create one of the world's most treasured luxury brands. Jimmy Choo has a global store network encompassing more than 150 stores and is present in the most prestigious department and specialty stores worldwide. Jimmy Choo PLC is publicly listed on the London Stock Exchange with the ticker CHOO.

 


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