The group saw continued growth ahead of the market despite the hard operating environment with reported operating profit up 42.6% at £25.3m.
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It said it grew revenues in its Asian markets, particularly China, although it labelled trading in the USA as “difficult”. On a “constant currency basis” (which adjusts revenues to remove the pound’s drop against other currencies Jimmy Choo sells in), revenue increased only 3.8% (pdf).
“There has been softer luxury demand in the US generally, compounded by a drop in sales to global tourism”, the company said.
Shares were up 6.2 per cent at 125p in early trading.
Designer shoe brand Jimmy Choo said it boosted sales in its first six months of the year despite “challenging market conditions”. The group said it was well-placed to take advantage of market dynamics seen since the sterling devaluation.
It has 10 stores in the United Kingdom, which make up 6.6 per cent of global sales, while 9.5% of global revenue is derived in sterling and 28 per cent of operating costs are pound-denominated.
With 9.5% of global revenue in sterling and 28% of operating costs denominated in the currency, a weaker pound “will lead to a reported upside in business performance at a revenue and profit level”, the company said.
While Jimmy Choo is known for its killer heels, made famous by the Sex and the City character Carrie Bradshaw, men’s footwear, including its Grove loafers, has become the retailer’s fastest-growing category.
In the first half, the men’s line saw growth and now accounts for 8% of revenue.
“This is combined with strong underlying cash flow conversion leading to further positive steps on deleveraging”.
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“We remain optimistic about our prospects both for this year and for our performance in the future”.
