Kurt Geiger maintains sales momentum in spite of ownership changes
London - British footwear label Kurt Geiger has managed to hold on to its sales momentum despite changing ownerships three times over the last four years. According to its first financial update since its current owners took over - private equity group Civen acquired Kurt Geiger last December - the footwear retailer has managed to double operating profit and increase its turnover to 281.6 million pounds for its fiscal year 2015.
“The retailer’s fashion-led proposition, premium - yet accessible - price points and distinct design aesthetic is unrivalled on the high street, and has kept it top of mind of footwear shoppers,” commented Nivindya Sharma, senior analyst at Verdict Retail on the retailer’s financial results. “[However] these results do not reflect its latest change of ownership, as it was sold to European private equity group Cinven in December 2015, and the footwear market in 2016 has been considerably less forgiving than that in 2015”.
“Kurt Geiger has not been immune to the pressures of waning consumer confidence and volatile weather patterns, as evidenced by the fact that it has been discounting heavily over the last few months, even on new season A/W 2016 stock,” added Sharma. “The retailer has to be careful to not dilute the Kurt Geiger brand too much, and ensure it remains aspirational and recognised for its quality and design credentials.”
The analyst praised Kurt Geiger for tapping supermodel Karlie Kloss for its Spring/Summer 2016 campaign and advertising its strong celebrity following through its website and social media channel via its “As Seen On” initiative which is likely to drive up its brand appeal and boost brand awareness. “Given its robust product proposition and the continuing desirability of its brand, Kurt Geiger is in prime position to benefit from further investment from its new owners, whose focus must now be on nurturing the brand and expanding internationally as its domestic presence matures.”
Founded in 1963 by Kurt Geiger, the brand has grown throughout the UK and currently operates over 70 stand alone stores around world as well as more than 170 concessions at high end departments stores such as Brown Thomas, Arnotts and Debenhams.
Photos: Kurt Geiger