Exclusive: Jimmy Choo to pledge industry-beating growth in expected IPO

Wed Sep 17, 2014 5:09pm EDT
 
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By Astrid Wendlandt

PARIS (Reuters) - Luxury shoe brand Jimmy Choo will seek to woo investors with a share market flotation prospectus promising industry-beating annual sales growth of more than 10 percent on the back of aggressive expansion plans in Asia and elsewhere, a source close to the deal told Reuters.

The upmarket shoe maker, known for its stilettos worn by Hollywood and Asian stars alike, will decide in the coming days whether it goes ahead with the initial public offering (IPO), depending on market conditions.

If launched at the end of this month and depending on the precise timing, it is aiming for a listing at the end of October or early in November, the source said.

The IPO, which could value Jimmy Choo at more than 700 million pounds ($1.14 billion), will be the first in the luxury sector since Moncler's successful flotation in Milan last year and would add a third luxury name to London's market after Burberry (BRBY.L: Quote) listed in 2002 and Mulberry MUL.L in 1996.

But this time around the environment has become more challenging, with flagging demand from the Chinese and the Russians and conflicts in Ukraine and the Middle East. Cartier owner Richemont CFR.VX on Wednesday posted slowing sales growth, particularly in Asia, its biggest market.

The luxury goods industry has been suffering a slowdown since the second half of 2012, with annual sales growth of the industry's main listed stocks dropping to an estimated 5-6 percent this year, from around 10 percent in 2012.

Jimmy Choo will argue that its future growth rates will likely remain above those of the industry as its compound annual growth rate (CAGR) for the past five years has been 10-12 percent, the source said.

The company's average annual sales growth has hovered around 15 percent in the past three years alone, the source added.   Continued...

 
A model presents a creation from Jimmy Choo during its London Collections: Men show in London June 16, 2014. REUTERS/Suzanne Plunkett