LONDON (Alliance News) - Luxury shoe and accessories maker Jimmy Choo PLC Thursday reported a narrowed pretax loss for 2014 thanks to a debt-for-equity swap deal it did last autumn, and its closely-watched revenue and operating earnings rose as its goods continued to prove popular and it opened more new stores, mainly in China, and renovated others.
In its maiden set of annual results as a listed company, Jimmy Choo reported a pretax loss of GBP8.3 million for 2014, compared with the GBP21.4 million loss it posted in 2013, as finance costs dropped by GBP20 million following a debt-for-equity swap that it did last October. That meant its debt stood at GBP125.6 million at the end of 2014, down from GBP582.4 million a year earlier.
Its closely-watched earnings before interest, tax, depreciation and amortisation and also excluding exceptional costs and loss on asset sales rose to GBP50.2 million, from GBP46.9 million in 2013, as revenue increased to GBP299.7 million from GBP281.5 million, and its Ebitda margin rose to 16.8%, from 16.6%.
It was hit by the strength of the pound. Revenue would have been up 12.2% if exchange rates had remained stable over the year, nearly double the actual increase of 6.4%.
It said revenue grew across its retail, wholesale and licensing operations, with retail revenue up 8.8% including like-for-like growth of 5.7% and the rest from the opening of nine new stores, half of which are in China. It said the like-for-like sales growth was helped by the new store concept it is rolling out, with 10 existing stores renovated or relocated.
"The early indications from the new concept renovations undertaken in the year are that they enjoy noticeably improved like-for-like sales," it said.
"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 underpenetrated compared to our peers. Our investment programme in new (directly operated stores) and our new concept has continued," Chief Executive Pierre Denis said.
It added that men's remains its fastest growing category.
The company's operating profit fell to GBP24.1 million in 2014, from GBP25.1 million in 2013, mainly due to GBP7.8 million of costs related to its October initial public offering.
Looking ahead, it said it will open 10 to 15 of its own stores each year, and renovate 10 to 15 of the existing stores. It said its Asian markets are continuing to grow well, although European markets have been hit by a drop in Russian travellers.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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