Jimmy Choo revenue boosted by weak pound
Luxury brand Jimmy Choo reported a solid rise in full-year revenue on Thursday, but a drop in pre-tax profit as costs increased.
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For the year to the end of December, revenue grew 14.5% to £364m, thanks in part to the weakening of the pound.
The group said revenue was significantly affected by currency volatility during the year, particularly after the UK’s vote to leave the European Union in June, which saw the pound slump across the board, resulting in significant reported sales value gains in the second half of the year.
Jimmy Choo said it saw growth across EMEA, where business improved throughout the second half, with a benefit from the weaker sterling, which underpinned good growth in sales to international clients.
Meanwhile, in Continental Europe, the impact of geopolitical events cut tourist spend and slowed sales, but with an improved trend building throughout the second half and some sizeable shifts in client shopping patterns, largely in favour of UK trading.
However, pre-tax profit fell to £17.7m from £22.1m.
Chief executive officer Pierre Denis said: “2016 was a landmark year for Jimmy Choo. Not only did we successfully celebrate 20 years of heritage but record revenues and profitability are testament to the growing appeal and strength of our brand.
“We will continue to deliver on our long-term strategy of growth through the creative and innovative development of our collections and the sustained expansion of our distribution network, particularly in areas such as Asia where we remain underpenetrated. I would like to thank all my colleagues for their hard work this year in delivering this excellent performance."
At 1106 GMT, the shares were down 0.5% to 156.75p.