Jimmy Choo revenue grows, on track for full year

18th Nov 2016 07:41

(ShareCast News) - Luxury retailer Jimmy Choo reported revenue growth for the second half on Friday and said it was on track to deliver full-year underlying profits in line with expectations.In an update on trading since the end of June, the company said it was seeing revenue growth despite the continued difficult climate for the luxury industry, driven by new store openings and improving retail trading in all regions in the second half, with China especially strong.During the period, it has opened four new directly operated stores, one in each region, while three stores - including the flagship store in Milan - were converted to the new store concept.The company said its like-for-like date in the second half has moved back into positive territory despite this disruption.Jimmy Choo said it expects to deliver margin improvement and strong underlying cash generation for the full year thanks to its focus on improving operating efficiency and cost management.In addition, it said the weaker pound continues to have a positive impact, as do the resultant changes in client behaviour, notably in respect of the UK.Chief executive officer Pierre Denis said: "The company continues to grow and to build on the strength of the brand and new store openings. We look forward to achieving another record year despite the challenging backdrop, and remain on track to deliver underlying profits in line with expectations."RBC Capital Markets reiterated its 'outperform' rating and 165p price target on the stock."Today's IMS demonstrates Jimmy Choo's strong execution in a difficult luxury environment, which we expect to be positively received by the market. We like its under-appreciated, long-term growth potential, with company specific levers for revenues (store roll-out, franchise conversions, Men's,) and margins (channel mix, product availability, renovations and operating leverage)."At 1020 GMT, the shares were up 2.6% to 132.15p.