Brexit’s lured tourists wear Jimmy Choo…to record sales in 2016

If the now so-called ‘Brexit effect’ has affected a single brand in a positive way that is Jimmy Choo.The designer shoemaker has secured record sales last year and celebrated extraordinary growth in its menswear division.

Luxury shoe and fashion accessory retailer Jimmy Choo PLC (CHOO.LN) Thursday reported record full-year revenue and forecast 2016 underlying profits in line with expectations. Revenue in the year to the last of December rose 15 percent to 364 million pounds (459.9 million dollar), up 2 percent at constant currencies, compared with 2015.

Pierre Denis summed up the label’s bonanza: “We had a strong improvement in the second half in the UK, helped by more tourists. The feeling was good.” Denis added that men’s ranges are the fastest-growing category for the business.

Also on the rise, retail revenue, which increased 17 percent to GBP244 million, or 4 percent on a constant currency basis. Wholesale revenue rose 8 percent to GBP107 million, down 4 percent at constant currencies, with a planned reduction in purchasing by U.S. department stores offset by rises elsewhere, reported the company.

Key to this stellar year was a stronger final quarter that resulted in like-for-like sales rising 2 percent in the second half and overall like-for-like sales for the year falling 1 percent. The firm said strong growth in Asia, solid growth in Europe and Japan and improving trends in US retail were offset by the planned reduction in its US wholesale operation.

Shoes –also men’s shoes- the main driver of revenue growth for Jimmy Choo

Over 2016, shoes were the main driver of higher revenue in 2016, representing 75 percent of revenue, according to the company’s financial release. While most of the firm's sales still come from women's fashion, it is seeing rapid expansion of its new men's range.

On a related note, accessories benefited from continued development of the group's Lockett range of bags.

A note from Bank of America Merrill Lynch said: "Jimmy Choo continues to offer an attractive long-term growth profile relative to peers, as it benefits from channel, regional and product opportunities."

Looking ahead, the company’s boss said that they “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.'

Six months ago, the group forecast the pound's devaluation would lead to an “upside in business performance at a revenue and profit level”. And they have proved to be right: following the Brexit vote, Jimmy Choo said it stands to benefit from the collapse in sterling and its yearly figures attest to that.

On the back of the news, shares in Jimmy Choo increased by 1.85 pence to 153.1 pence following the trading update.

Image:Jimmy Shoes Web