Jimmy Choo could post its third consecutive quarter of comparable sales growth, and the wholesale division is already showing particularly strong momentum, he said. In North America, sales in the last reporting period increased by more than 20%, which confirms the positive trend, writes WWD. Management is confident that the brand can significantly improve its financial performance if the current pace is maintained.
Capri Holdings is also betting on updating the image of Jimmy Choo. The brand seeks to move away from a narrow association exclusively with evening outings and festive events. The new positioning strategy is focused on a more casual style – the image of a modern woman with natural elegance. The role of digital channels and influencers is being strengthened in the promotion, as it was previously realized for Michael Kors.
In the retail strategy, the company intends to optimize the network: the number of stores will be reduced from 230 to approximately 200 in order to increase efficiency. At the same time, special attention is paid to the development of the accessories category, which currently generates about 25% of revenue, but in the future may grow to almost 40% and become a more marginal area than footwear.
Despite moderate revenue growth (about 5% in the last quarter), the brand’s profitability has temporarily declined. Capri expects Jimmy Choo’s operating margin to return to the 10-15% range, as it was previously.
Recall that Capri Holdings acquired Jimmy Choo in 2017 for $1.2 billion, expecting to bring the brand’s annual revenue to $1 billion. Today, the management confirms: the sale is not considered, and the brand itself remains a strategically important asset with a high potential for further development.
