Jimmy Choo profits jump 174%
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Luxury shoemaker Jimmy Choo Plc, which is being bought by U.S. retailer Michael Kors, said its pretax profit for the half year almost tripled, helped by its retail and licensing businesses.
Pretax profit for the six month to June 30 was 18.1 million pounds ($23.4 million), compared to 6.6 million pounds last year. Revenue for the period rose 4.5 percent to 201.6 million pounds.
Michael Kors agreed two months ago to buy Jimmy Choo for $1.2 billion, snapping up the British company whose towering stilettos have been made famous by celebrity customers from Princess Diana to Kendall Jenner.
Jimmy Choo Chairman Peter Harf said the deal opened up exciting opportunities.
“The shared vision and distinctive appeal of these two iconic brands will provide an exciting platform to achieve global leadership in luxury retail,” Harf said in a statement.
Revenue at the company’s Japan unit rose 11 percent at constant currency helped by continued growth in its Men’s section.
Excluding Japan, the company’s Asia business grew 8.2 percent at constant currency, driven by strong demand for seasonal fashion offerings.
Shares in the company were up about 0.2 percent at 0740 GMT on the London stock market, trading close to the 230p offer price. ($1 = 0.7747 pounds) (Reporting by Sanjeeban Sarkar in Bengaluru; Editing by Keith Weir).
Questions & Answers
Q.What specifically contributed to the almost tripled pretax profit for Jimmy Choo?
What specifically contributed to the almost tripled pretax profit for Jimmy Choo?
The luxury shoemaker's pretax profit increase for the half year was primarily helped by the performance of its retail and licensing businesses. This contributed to the jump from £6.6 million last year to £18.1 million.
Q.Which geographic regions showed strong revenue growth for Jimmy Choo during this period?
Which geographic regions showed strong revenue growth for Jimmy Choo during this period?
The company's Japan unit saw an 11% rise in revenue at constant currency, partly due to growth in its Men's section. The wider Asia business, excluding Japan, grew by 8.2% at constant currency, driven by demand for seasonal fashion.
Q.How did Jimmy Choo's overall revenue perform during the six months to June 30?
How did Jimmy Choo's overall revenue perform during the six months to June 30?
Overall revenue for the period increased by 4.5 percent, reaching 201.6 million pounds. This growth contributed to the significant rise in the company's pretax profit.
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