Kurt Geiger, the British luxury footwear brand, has defied the odds and achieved positive financial results for the year ending in January, in spite of the ongoing disruptions caused by the COVID-19 pandemic. The company experienced impressive growth in both turnover and profit during this challenging period. Turnover surged by an impressive 21.9%, reaching £234.3 million. The total gross margin also saw a significant improvement, rising from 46.9% to 54%. EBITDA, which measures the earnings before interest, tax, depreciation, and amortization, experienced an outstanding increase of 165%, reaching £19.6 million as compared to the previous year’s figure of £7.4 million. The operating profit showed a remarkable swing, improving to £2.9 million from the previous year’s loss of £22.7 million. Furthermore, the final net profit figure reached £7.3 million, a significant improvement from the loss of £15.5 million in the previous period.

Despite the economic obstacles presented by the pandemic, Kurt Geiger attributes its turnover growth to the strong performance of its own-brand business, especially in the United States and Europe. However, the growth was partially offset by the impact of the pandemic, including forced store closures during the first quarter and increased restrictions in the final quarter.

The impressive increase in gross margin can be attributed to Kurt Geiger’s efficient management of inventory levels and the growth of its own-brand product mix. However, the margin was still affected by overstock as a result of disruptions caused by the pandemic. Kurt Geiger highlighted significant trading achievements during the year, particularly in its wholesale business, with exceptional growth witnessed in international markets. The company sees wholesale as a tremendous success and an opportunity for future brand expansion.

In addition to its financial success, Kurt Geiger underscored its ongoing commitment to investing in its digital operations and expanding its Carvela branded stores. Five new Carvela stores were opened during the year. Additionally, the company diversified its product offering by launching its accessories and jewelry range both in physical stores and digitally.

Despite the ongoing challenges posed by the pandemic, Kurt Geiger remains resilient. The brand’s ability to adapt and seize opportunities in its own-brand business, international markets, and digital channels positions it for future expansion and growth. With its positive financial results and strategic investments, Kurt Geiger is well-equipped to thrive in the luxury footwear market.

Helpful links:

1. Kurt Geiger Official Website
2. Carvela Official Website