Higher costs due to Brexit dent Christian Louboutin in UK
UK profits for luxury shoemaker Christian Louboutin plummeted in the last financial year to just £1.1 million, after hitting £5.8 million in the previous 12-month period.
The company blamed the tough retail market for the disappointing figures in the year to August 31 2017 as its sales rose only marginally, lifting just 0.3% to £52.7 million.
But the directors said the “results for the year and the financial position were considered satisfactory” in what is “undoubtedly a more challenging environment in [the] UK,” and also cited “strategic decisions with regards [to] distribution of the Louboutin brand” in Britain.
The company’s gross profit of £20 million represented 38% of turnover compared to 47% in the previous year and the firm said the result “includes the impact of [the] devaluation of sterling seen since the UK [Brexit] referendum, which has led to an increase in purchasing costs.”
But the company continues to invest in its retail store portfolio in Britain and increased such investment in the last year by £0.5 million to £1.1 million.
Despite the lower profits, a dividend of £3 million was paid to the brand’s parent company for the period, down from £3.5 million a year earlier, with company founder Christian Louboutin sharing in that payout. He is one of three directors, along with co-founder Bruno Chambelland and Alexis Mourot.
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