British luxury footwear brand Manolo Blahnik has released its latest fiscal year performance as of December 31, 2023: sales decreased by 10% year-on-year to 106.5 million euros (compared to 118.2 million euros in the previous fiscal year), and pre tax profit decreased by 30% year-on-year to 15.4 million euros, but operating profit remains strong, accounting for 15% of total revenue.
Despite not being spared from the slowdown in the luxury goods market, the brand stated that its performance in 2023 met the group’s expectations and was “the second best year so far
During the period, the company made good progress in laying the foundation for international growth, including but not limited to investing heavily in the infrastructure of the system and implementing a new enterprise resource planning system (ERP). The new system, which was put into use in early 2023, optimized and improved the entire supply chain, unified reporting, and promoted the efficiency improvement of the entire business
In terms of customer-oriented investment, Manolo Blahnik has comprehensively transformed its online business and achieved an increase in conversion rates. In September, the brand also launched the “The Craft Room” project, which utilizes VR technology to showcase the brand’s craftsmanship and work archives online. The total number of views has exceeded one million so far.
It is worth mentioning that the brand’s men’s products have performed strongly in 2023. The company will launch a promotion plan for men’s clothing at the end of 2022, which will continue until 2023, driving “sustained growth in sales in this category
In September 2023, Manolo Blahnik also invested in the acquisition of properties located in the UK’s global headquarters in Mayfair, London, further deepening its foundation as a British brand. The brand’s new headquarters is located in a building on Old Burlington Street in the Mayfair district, blending the historic elements of the block with a low-key luxury feel. The office area exceeds 14500 square feet and features a spectacular showroom.
Looking to the future, the brand remains optimistic and plans to expand globally, hoping to drive a rebound in performance by 2025.
Manolo Blahnik did not provide specific expected targets for 2024, but stated that given the “ongoing macroeconomic and geopolitical headwinds,” the company will continue to “advance its global strategic investment plan while prudently managing costs
We expect demand to continue adjusting to pre pandemic levels in 2024. After careful consideration, we have decided to integrate our wholesale network, develop self operated distribution channels, and restructure our D2C and B2B business models as a result, “said Kristina Blahnik, CEO of the company
