British shoe maker Jimmy Choo has today announced its intention to launch an initial public offering (IPO) on the main London Stock Exchange.
The brand plans to float around 25% of the company through the IPO which is expected to take place in October. Previous widespread reports have indicated that the IPO could value the company at around £700m.
Jimmy Choo was founded in 1996 by Tamara Mellon and shoe designer Jimmy Choo. It was acquired by luxury business group JAB Luxury in 2011 and reported sales of £282m in 2013.
It reported revenues of £150.2m in the first half of this year, up 9.4% on the prior half year ended 30 June 2013, with like-for-like revenue growth of 2.2%.
Over the last two years, Jimmy Choo said the company has grown net revenue by £70.9m. This was achieved through revenue growth of 17.1% in the 12 months to 31 December 2012 and 15.6% in the 12 months to 31 December 2013. This was driven by like-for-like revenue growth of 6.1% and 7.1% respectively and new store openings.
Following the IPO the brand plans to open 10 to 15 stores a year, in line with what has been achieved over recent years. It said it also expects to continue to pursue growth through its joint venture and wholesale channels.
Pierre Denis, chief executive officer of Jimmy Choo, said: “Jimmy Choo is an outstanding business operating in one of the fastest growing segments of the luxury market. In recent years our talented teams have worked tirelessly to develop a focused business model with the requisite skills, innovation and investment to outperform in this category. The results speak for themselves through Jimmy Choo’s strong continued top line growth, progressive margins and cash generation. Jimmy Choo is a clear success story with strong momentum and I am confident that our future as a public company can only extend our reputation and position in this attractive sector.”
Peter Harf, non-executive chairman of Jimmy Choo, added: “Since JAB Luxury acquired Jimmy Choo in 2011, the business has undergone significant investment and is now comprehensively scaled for growth. As a long term investor, JAB Luxury will continue to support Jimmy Choo’s talented management and design team to deliver its compelling growth strategy without compromising the brand’s exclusivity.”