Half-year numbers have put quite the shine on shoe king Jimmy Choo (CHOO). Its shares rose roughly 6 per cent despite a 4 per cent tail-off in like-for-like sales growth. The latter fall was largely the result of the group's ongoing store redevelopment programme, tough comparative figures and general market conditions in the US. Soft demand there for luxury products, reduced purchasing by department stores and lower sales to international tourists all contributed.
On a more positive note, the group has continued to gather most of its growth from Asia. Sales grew 18 per cent in Japan and 22 per cent in the rest of Asia, at reported currencies, although this is slower than the respective growth rates of 21 per cent and 35 per cent reported this time last year.
While reported pre-tax profits were hurt by a revaluation of financial securities following the recent sharp devaluation in sterling, overall top-line growth and improved margins combined with lower overheads and exceptional costs to lift adjusted cash profits by 13 per cent to £31.3m.
Analysts at Liberum expect pre-tax profits of £31.4m for the year ending December 2016, giving EPS of 6.4p, compared to £24.5m and 5p in 2015.
| JIMMY CHOO (CHOO) | ||||
|---|---|---|---|---|
| ORD PRICE: | 124p | MARKET VALUE: | £468m | |
| TOUCH: | 123-124p | 12-MONTH HIGH: | 168p | LOW: 93p |
| DIVIDEND YIELD: | nil | PE RATIO: | 48 | |
| NET ASSET VALUE: | 125p* | NET DEBT: | 29% | |
| Half-year to 30 June | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2015 | 159 | 20.2 | 4.0 | nil |
| 2016 | 173 | 6.6 | 1.5 | nil |
| % change | +9 | -67 | -63 | - |
Ex-div: na Payment: na *Includes intangible assets of £601m, or 159p a share | ||||
