OUR GOAL IS TO PURSUE GROWTH WITHOUT COMPROMISING THE JIMMY CHOO BRAND. THIS IS ACHIEVED BY SUCCESSFUL PRODUCT COLLECTIONS DRIVING POSITIVE LFL SALES, OPENING NEW DOS AND EXPANSION IN ASIA AND SELECTED NEW MARKETS.
Shoes are at the heart of Jimmy Choo and will remain the core offering. Shoes represent three quarters of revenue, and we do not expect this to change substantially. Jimmy Choo is a specialist luxury shoe company focused on growing our relationship with our customers and clients. Growth will always be pursued within the context of protecting the Jimmy Choo brand identity and luxury positioning. We believe that Jimmy Choo’s unique brand DNA and experienced design team will enable us to continue to deliver collections that resonate strongly with our clients.
We aim to deliver earnings growth and returns through focusing on growth ahead of the market and margin expansion, together with good cash flow conversion.
Revenue growth is supported by the store opening programme, through which the Group plans to open around 10 new DOS each year, as well as the roll out of the New Store Concept across the estate. In addition to our DOS expansion plans, we intend to pursue growth through our multibrand, franchise and JV channels. All of these are important for Jimmy Choo’s business model as they provide access to new markets.
Our aim is to grow towards a regional mix more in line with the wider luxury market through growth in Asia and selected new markets, while maintaining our presence in EMEA and the Americas. Jimmy Choo’s revenue growth strategy is focused around the following key pillars (click to enlarge):
The business is scaled for growth. Our expectation is that the revenue growth initiatives described, together with increased control over distribution, should drive gross margin improvement in the business. Direct costs will grow broadly in line with retail revenue growth and indirect costs will grow slower than overall revenue. The new systems and logistics investment will help the management team to improve inventory efficiency, thereby reducing markdowns and increasing cash flow, which will lead to the deleverage of the business.