The iconic Jimmy Choo shoe brand plans to launch on the London stockmarket as a standalone company, it was announced today.
The brand, which has featured in shows from Sex and the City to The Devil Wears Prada, currently trades online, through 120 directly-owned stores and wholesale. It turned over £150.2m in the first half of its financial year, to the end of June. Sales were up by 9.4% compared to the same time last year, or 2.2% on a like-for-like basis, which strips out the effect of store openings and closures. Earnings before interest, tax and depreciation of assets (EBITDA) reached £27.6m, while net income came in at £10.8m.
Its last full year, to the end of 2013, Jimmy Choo revenue hit £281.5m, up by 7.1%, like-for-like, with EBITDA of £46.9m and net income of £21m. In its statement to the stockmarket today, the company said ecommerce had “proved to be one of the key elements of growth in the current environment”.
The proposed flotation comes in year three of a five-year investment programme that has already seen its online platform relaunched. Further investments are expected to provide omnichannel distribution “in the medium term”.
Jimmy Choo, founded in 1996 by Jimmy Choo and Tamara Mellon, has been owned by JAB Luxury since 2011, alongside the Bally, Belstaff and Zagliani brands. The flotation would see JAB Luxury remain a major investor in the new Jimmy Choo PLC.
Pierre Denis, chief executive of Jimmy Choo, said: “In recent years our talented teams have worked tirelessly to develop a focused business model with the requisite skills, innovation and investment to ouperform in this category. The results speak for themselves through Jimmy Choo’s strong continued top line growth, progressive margins and cash generation. 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.”
The news comes as a new Digital River report, Go your Own Way, argues brands should sell online to customers. The report, researched by Redshift Research, found that 89% of shoppers already research purchases direct with brand websites in their online shopping journey, with 31% saying they would change their brand allegiance if they couldn’t buy direct.
Marco Vergani, general manager and vice president of EMEA at Digital River, said: “Consumer appetite lies at the heart of online retail’s explosion. Shoppers have evolved in the way they want to gather and share information, interact with brands and retailers, and ultimately purchase goods.
“We know budget constraints and lack of expertise can often be barriers to brands when considering ecommerce. Outsourcing the management of the commerce business infrastructure is an extremely effective way for brands to establish direct online access with consumers, while removing the complexities of transacting online.”
