Jimmy Choo narrows losses as it strides into Asia
The figures
Full-year revenues increased to £299.4m for 2014, while like-for-like sales rose 5.7 per cent to £192.1m. The luxury shoe maker made a net loss of £10.8 in 2014, which had narrowed from £17.7m a year earlier.
However, markets were unimpressed, and its shares were trading down 2.74 per cent at 170 pence per share.
Why it's interesting
Today marks the first set of full-year results since the brand floated on the London Stock Exchange last year. It had priced shares at 140 pence per share, at the lower end of expectations, amid a cooling London IPO market. But since then its shares have risen around 26 per cent.
Jimmy Choo said its results were dented by adverse movements in the dollar/sterling exchange rate last year. The stellar performance from the US economy, as well as diverging monetary policy, has exacerbated this.
Meanwhile Asia provided the lion-share of sales, showing the company's strategic focus there had paid off.
"Asia remains our strongest growth region," the company said. "Asia excluding Japan grew by 34.5 per cent, with strong acceptance of our collections and increasing brand penetration driving like for like supported by our continued build out of new stores."
Jimmy Choo will capitalise on this by opening 10 to 15 directly-owned shops this year, with a focus on China.
What Jimmy Choo said
Pierre Denis, chief executive of Jimmy Choo, said:
This has been a year of great financial, strategic and operational progress for the company.
With our unique DNA and experienced team we have continued to deliver products that resonate strongly with our clients. As a specialist brand we have invested to outperform in this attractive and complex category thus delivering operating leverage. We are expanding in Asia and selected new markets where we are under penetrated compared to our peers. Our investment programme in new DOS and our new concept has continued.
We remain focused on executing our growth strategy and pursuing growth without compromising our brand or its luxury position despite the more challenging macroeconomic environment.
In short
Today's results show it's beginning to recoup its initial public offering costs as it looks towards Asia for growth.