Kurt Geiger, the well-known retailer specializing in shoes and bags, has reported its most profitable month ever, setting a new record during the Christmas trading season. The company has seen remarkable growth in North America, with its handbags becoming the best-selling category. In addition to this success, Kurt Geiger has revealed plans to establish an in-house academy called ‘Business By Design’, aimed at providing education and opportunities for young people who are underrepresented.
Financially, Kurt Geiger experienced a double-digit increase in sales in December, particularly in North America. Despite a challenging fashion sector in the UK, the company saw a 12% rise in store sales and a 45% increase in online sales, driven by the demand for handbags and accessories. The previous financial year also brought impressive results, with a 31% increase in group turnover to £329.5 million and a 49% rise in EBITDA to £30 million. Handbag sales reached a record high of £91.6 million during this period, with a staggering 171% increase in sales in the US.
The success of Kurt Geiger’s handbags has propelled the brand to new heights, transforming it from a shoe retailer into a leading specialist in footwear and accessories. Handbags now account for half of the company’s sales in the UK and are the top-selling category in the US market. Kurt Geiger has established itself as a prominent name in affordable luxury bags, offering leather bags at an average price of £250, while other luxury bags in the market often fetch four-figure prices. The company plans to expand its handbag range in 2024, introducing larger shapes and sizes.
Kurt Geiger’s success in North America has been further boosted by celebrity endorsements, with influential figures like Kylie Jenner, Julia Roberts, and Jennifer Lopez frequently spotted wearing the brand. Despite entering the North American market just four years ago, the US has quickly become Kurt Geiger’s largest market. The company has also expanded its presence in Mexico, successfully opening stores there. Five additional stores are set to open in the US this year.
While Kurt Geiger is focused on international growth, it remains committed to its domestic market as well. The brand currently operates 74 standalone stores in the UK and two in Ireland. In 2023, eight new stores were opened in the UK, including a flagship store on London’s Oxford Street.
In addition to its financial achievements, Kurt Geiger is dedicated to giving back and creating opportunities for young people. The company has donated £1 million to the Kurt Geiger Kindness Foundation, which aims to support young individuals from all backgrounds in entering the creative industries. As part of this initiative, Kurt Geiger has launched the Business By Design academy, a free seven-month learning program designed to provide practical skills and education in various aspects of the creative business. The academy will offer mentorship from experienced Kurt Geiger team members and will include masterclasses, skill sessions, and paid work experience.
Neil Clifford, CEO of Kurt Geiger, expressed his satisfaction with the company’s accomplishments, highlighting how the brand has evolved from a shoe brand in the UK to a global accessories brand with a dedicated following in both the US and the UK. Clifford attributes this success to Kurt Geiger’s ability to provide accessible luxury with high-quality and distinctive designs. With the ongoing popularity of handbags and the growing number of celebrities endorsing the brand, Kurt Geiger is poised for further profitable growth in 2024.
Sources:
– Retail Gazette
– Business of Fashion
