Business

Jimmy Choo's revenue walks tall in 'challenging' market

Jimmy Choo shoes Image copyright Jimmy Choo
Image caption Jimmy Choo sits pretty in its second half trading update despite a "challenging backdrop"

Many luxury brands are complaining that the economic slowdown in China has hit their sales - but not Jimmy Choo.

The brand seen on the feet of many celebrities and royalty said new store openings and trading in all areas had driven growth, especially in China.

Chief executive Pierre Denis said "continuing strength" in China put the firm on course for "another record year despite the challenging backdrop".

Investors liked what they heard, sending Jimmy Choo shares up 4.5%.

Image copyright Getty Images
Image caption Actress Uma Thurman with Jimmy Choo chief executive Pierre Denis (left) marking the start of the Christmas season at the Paris store, Printemps

The light fantastic

The company, which is celebrating its 20th anniversary, said in a trading update that the weaker pound had helped UK sales. The favourable exchange has attracted more tourists to the UK.

Jimmy Choo said that since 30 June it had opened four new directly-operated store. The company has also been investing heavily in store refurbishments, including the flagship outlet in Milan which was closed for two months.

The brand said that despite this disruption, like-for-like sales in the second half of the year have moved back into positive territory.

Brands know they must constantly evolve to survive, but it is a tricky balancing act. Jimmy Choo said it continued to attract new buyers, while keeping the loyalty of its existing customers.

Image copyright Jimmy Choo

Earlier in the year, Prada said it wanted to appeal to younger customers through online sales and more flexible pricing.

It suffered a 25% drop in first half profits due partly to falling demand in China and Italy.

Burberry, too, has struggled to counter a downturn in mainland China and Hong Kong. However, like Jimmy Choo, it UK sales have been boosted by tourists taking advantage of the plunge in the pound.

Jimmy Choo produces a wide range of luxury items, from handbags and scarves to sunglasses and perfume. But its shoes remain at its core.

Its footwear is often seen on the red carpet worn by celebrities such as Jennifer Lopez and Bella Hadid.

Kate Middleton is also a fan.

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