Kurt Geiger, a renowned footwear retailer, is experiencing significant growth, thanks in part to its flourishing handbags division. In the fiscal year ending in January, the company achieved a remarkable 31% increase in turnover, reaching £329.5 million, while EBITDA surged by 49%, totaling £30 million.
Annual wholesale turnover also saw a substantial increase, rising by 62% to reach £70.1 million, with wholesale EBITDA more than doubling during the same period.
International expansion played a pivotal role in the company’s robust performance. However, the standout factor in this success story was the surge in handbag sales, both domestically and overseas, which increased by an impressive 72%, reaching £91.6 million year on year. This development underscores that Kurt Geiger is no longer just a footwear retailer, as handbags now constitute half of its UK sales and are the most crucial category in the US.
Kurt Geiger has also diversified its product range, entering the fields of jewelry and swimwear, suggesting that its business description may continue to evolve in the coming years.
The company operates shoe departments in high-end department stores worldwide, which are also performing well. In addition, its results were positively influenced by its strategy of opening new standalone branded stores. In the last 12 months, 12 new locations have been launched, including a key store on Oxford Street. The brand is also expanding its footprint in North America, with three stores in Mexico and plans to open six more in the US in the next year.
CEO Neil Clifford expressed his belief in the importance of physical stores as the cornerstone of the brand’s omnichannel retail strategy. The company’s commitment to the brick-and-mortar retail experience is evident in its expansion plans across the UK, North America, and Europe in 2024.
Kurt Geiger also recognizes the significance of its online presence, with online sales in the US surging by a remarkable 171% in the past year.
