Kurt Geiger, a renowned fashion retailer, has recently announced a remarkable surge in sales and profits in the period leading up to February 2020. Overcoming the obstacles presented by a subdued retail landscape, the company achieved exceptional results, with sales climbing to £347 million, marking a 3.7% increase. This outstanding performance was credited to the flourishing wholesale own-brand business in the US market and the expansion of its distribution network with new partners in the US and Europe.
The product performance of Kurt Geiger witnessed remarkable growth in the sales of sneakers and handbags, with a 35% increase in sneakers and a 20% increase in handbags. By the close of the financial year, handbags constituted 20% of the company’s own-brand sales. These impressive sales figures translated into a boost in profits, with earnings on an EBITDA basis soaring by 11.5% to £40.2 million, and operating profit jumping by 22% to £29.7 million.
Despite the success in financial terms, Kurt Geiger acknowledges the hurdles posed by the Covid-19 pandemic, which has significantly impacted the retail sector. Nonetheless, the company remains hopeful about the future, emphasizing its commitment to emerging from the pandemic as a more resilient and impactful brand by strengthening connections with customers, employees, and suppliers.
In response to the pandemic, Kurt Geiger has taken steps to ensure its financial stability, including participating in government schemes like the Job Retention Scheme and maintaining unused bank facilities of £30 million. The company’s major shareholder has also pledged additional support as needed, ensuring that Kurt Geiger is well-equipped to navigate through the ongoing crisis.
Looking forward, Kurt Geiger intends to continue its strategic growth efforts, with a focus on expanding its digital footprint through its online platforms, Kurt Geiger and Shoeaholics. While the company foresees a potential impact on revenue and profitability in the current financial year due to the pandemic, it remains dedicated to enhancing its brand, offerings, and partnerships to better cater to its customer base.
In essence, Kurt Geiger’s ability to adapt and persevere in the face of challenges positions the company for future success as it tackles the hurdles presented by the pandemic and pursues its strategic growth aspirations.
For more information about Kurt Geiger and its latest updates, please visit their official website here.
To explore the latest fashion trends and offerings from Kurt Geiger, check out their online platform, Shoeaholics, by visiting here.
