Luxury footwear brand Jimmy Choo has confirmed plans to list on the London Stock Exchange as it targets a global expansion following strong revenue …
Luxury footwear brand Jimmy Choo has confirmed plans to list on the London Stock Exchange as it targets a global expansion following strong revenue growth over the last two years. The company, which had sales of £282m ($460.5m) in 2013, expects the listing to take place in October. It was originally founded in 1996 by Tamara Mellon and Jimmy Choo before being bought by JAB Luxury GmbH in 2011.
“Jimmy Choo is an outstanding business operating in one of the fastest growing segments of the luxury market,” said CEO Pierre Denis. “In recent years our talented teams have worked tirelessly to develop a focused business model with the requisite skills, innovation and investment to outperform in this category. The results speak for themselves through Jimmy Choo’s strong continued top line growth, progressive margins and cash generation.”
Revenues at the company grew by 17.1% in 2012 and by 15.6% in 2013, on a constant currency basis, with same-store sales up 6.1% and 7.1%, respectively. For the current year, it posted a 9.4% sales gain in H1 to £150.2m, with comps up 2.2% after taking a knock from a store renovation programme. Excluding that, they would have been up 3.8%, the company said, adding that comps in H2 are improving.
Jimmy Choo had 120 directly operated stores as of June 30 and the company said it plans to open 10-15 new stores a year, as well as to pursue growth through JV and wholesale channels. It wants to expand its store count in Greater China and potential franchise buyouts and JVs in incumbent fast-growing markets such as the Middle East, South Korea, Singapore and Malaysia.
Between half and two-thirds of new stores are expected to be in China each year, where the medium term target is to grow to 30 stores from the current 10. It also plans to explore potential wholesale franchise opportunities in new markets where it currently has a limited presence, particularly in Latin America and Eastern Europe.
“Jimmy Choo is a clear success story with strong momentum and I am confident that our future as a public company can only extend our reputation and position in this attractive sector,” said Denis.