Prospects at luxury shoe brand Jimmy Choo PLC (LON:CHOO) have “never looked better” according to chairman Peter Harf as it celebrates its 20th anniversary this year.
The high-end fashion group saw revenues up 9% on a reported currency basis and 3.8% at constant currency, with continued growth ahead of the market despite what it called a “difficult operating environment” for the first half.
The weakened pound following Brexit proved fortuitous. The group said it was well-placed to take advantage of market dynamics seen since the sterling devaluation.
“9.5% of global revenue is derived in sterling while 28% of operating costs are denominated in sterling. Hence a weaker pound will lead to a reported upside in business performance at a revenue and profit level.”
Sales in men’s shoes now accounted for 8%, a figure the group says will rise “well into double digits”.
It currently has 71 “dual gender” stores open across the globe and expects to open more.
Operating profits were up 40% to £25.3mln, but pre-tax profits fell to £6.6mln from the £20mln reported at the same time last year, due to foreign-exchange losses.
However, gross margin expansion and cost control drove adjusted earnings growth of 12.8%.
Bucking a trend seen with other luxury brands, China and Hong Kong stores were doing well and delivered growth for the company.
Revenues from Asia, excluding Japan, were up 22%, reaching £27.1mln. The US market was a little tougher however, with revenues falling 3.4% to £50mln.