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Jimmy Choo Sees Successful First Half of 2017

Jimmy Choo reported a better than expected first half of 2017, with a strong net revenue growth and net income.

“We are delighted with our performance during the period, having delivered growth in revenue and margins, despite challenging market conditions. Strong underlying cash conversion has also allowed us to deleverage, providing us with a stable platform to deliver further strong growth,” said Jimmy Choo CEO Pierre Denis. “Our long-term growth strategy is to nurture the brand’s unique DNA, to strive for excellence in business execution and to enhance client experience, in order to deliver superior growth and profitability, as well as leveraging the significant investments we have made in the business to date.”

The company saw an overall continued revenue growth of 16.5%, to 201.6 million pounds, or $259.8 million, 4.5% at constant currency. A big factor of revenue growth belongs to the roll out of omnichannel services, while men’s growth continues, now making up 9 percent of revenue. Jimmy Choo also saw an adjusted consolidated net income increase of 22.4%

Broken down by country, revenue on a constant currency basis for the first half of the year, grew 5.9% for EMEA, 11 percent in Japan, 8.2% in surrounding Asian areas and dropped 2.7% in the Americas.

Wholesale revenue dropped 1.6% on a constant currency basis, but grew 10.4% on a reported basis, despite the anticipated reduction in purchasing by U.S. department stores during a tumultuous time for retail.

Adjusted net income for the first half of the year was 17.5 million pounds, or around $22.5 million.

Meanwhile, adjusted EBITDA was 37.4 million pounds, or $48.2 million, an increase of 19.5% with EBITDA margin up 50 basis points to 18.6%.

At Retail
The company saw six new directly operated stores, eight renovations and relocations and five closures. Jimmy Choo also has new concept stores representing over 50 percent of the retail network.

“We are excited about the opportunities presented to Jimmy Choo through Michael Kors’ all cash offer to our shareholders, as set out in the announcement on 25 July 2017,” said Peter Harf, Jimmy Choo chairman. “The shared vision and distinctive appeal of these two iconic brands will provide an exciting platform to achieve global leadership in luxury retail.”

Jimmy Choo continues its efforts to expand its accessories business, despite luxury shoes accounting for the majority of the first half’s revenue, representing 74 percent for the period.