- Prachi Singh |
For the year to August 31, 2019, luxury shoe retailer Christian Louboutin reported 4.8 percent drop in total sales to 50.2 million pounds (62.9 million dollars). However, the company’s pre-tax profits increased by 9 percent to 1.2 million pounds (1.5 million dollars) resulting in shareholders getting a dividend of 3 million pounds (3.7 million dollars) during the year under review.
Commenting on the annual trading, the company said in accounts filed with the Companies House UK: “The UK retail environment remains challenging, both in standalone boutiques and department stores. The ongoing uncertainty regarding the future relationship of the UK with the EU, and around the eventual timing of the UK’s departure from the EU, have both contributed to downward pressure on like-for-like sales.”
Christian Louboutin says outlook positive despite uncertain economy
Christian Louboutin posted gross profit of 20.73 million pounds, 41.3 percent of the turnover compared to 38 percent in the previous year. The company added that despite drop in like for like sales, this 3 percent rise in gross profit represents strong performance of latest collections.
The company further said that economic outlook continues remain uncertain however consistent performance of stores along with varied client portfolio provides confidence for the future.
The designer label popularly known for its red-stilettos, operates three standalone stores in the UK and has presence at Selfridges, Harrods and Harvey Nichols. The company said that throughout 2018, it invested 1.2 million pounds across existing and new locations.