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Reasons to keep buying shares in Jimmy Choo
Jimmy Choo (CHOO) 159.75p
Gain to date: 20.1%
Original entry point: Buy at 133p, 08 December 2016
Our bullish pre-Christmas call on high-end shoemaker Jimmy Choo (CHOO) is 20.1% in the money. We’re staying positive following record full year results (2 Mar) and a positive outlook flagging ‘improving retail trends across all regions’.
A testament to the growing global appeal of the British luxury brand, reported sales shot up 14.5% to £364m in 2016. Admittedly this number was flattered by sterling weakness following the EU vote.
Jimmy Choo’s retail sales rose 17.4% to £243.9m last year. Second half like-for-like performance was boosted by a strong Christmas quarter. We view the 7.4% growth in wholesale as a credible achievement given fewer purchases from US department stores.
We are sticking with our positive stance on Jimmy Choo, as it offers a compelling combination of brand strength, pricing power and global growth potential.
We’re heartened by Jimmy Choo’s sales and margin momentum and agree with the bullish consensus. (JC)