Kurt Geiger should now be focusing on expanding internationally after a solid performance in 2015.
Despite going round and round the carousel of ownership with three owners in the last four years, Kurt Geiger has maintained sales momentum and posted an impressive set of full year 2015 results, doubling operating profit and growing turnover to £281.6 million. 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.
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. 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.
Initiatives such as signing supermodel Karlie Kloss as the face of its brand for S/S 2016 and advertising its celebrity fan following on its website and social media channels through the ‘As Seen On’ function will continue to build its destination appeal and grow 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.
